Question
The following information was reported in Sandhill Company's general ledger at September 30. All sales were made on account. Bad debt expense is estimated to
The following information was reported in Sandhill Company's general ledger at September 30. All sales were made on account. Bad debt expense is estimated to be 1% of sales. Determine the missing amounts in Sandhill Company's accounts. State what each of these amounts represents. You will not be able to determine the missing items in alphabetical order. Ignore any inventory, cost of goods sold, and refund liability for the purposes of this question. (To solve this problem, it might help if you reconstruct the journal entries.) Accounts Receivable Beg. bal. 864,000 (b) (c) (d) End. bal. 4,600 530,200 Allowance for Doubtful Accounts Beg. bal. 73,000 53,700 (b) (e) End. bal. 72,970 Sales (e) Bad Debt Expense 4,907,000
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