The accounts of Quickly Company pro-vided the following 20X4 information at 31 December: Accounts receivable balance......... $

Question:

The accounts of Quickly Company pro-vided the following 20X4 information at 31 December:
Accounts receivable balance......... $ 600,000 (dr.)
Allowance for sales discounts........ 5,500 (cr.)
Allowance for sales returns .........2,000 (cr.)
Allowance for doubtful accounts .......40,000 (cr.)
In fact, the allowance for sales discounts is not needed at the end of 20X5, the allowance for sales returns should be $ 14,000, and aging shows that the allowance for doubtful accounts should be $ 65,000.

Required:
1. Prepare journal entries to adjust all allowances.
2. By how much have these entries changed earnings?
3. What is the net balance of that will be included on the SFP? Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...