This Website Has Been Moved to a New Link


Loading

E8-3 The ledger of Elburn Company

Price: $2.50


E8-3 The ledger of Elburn Company at the end of the current year shows Accounts
Receivable $110,000, Sales Revenue $840,000, and Sales Returns and Allowances
$28,000.

Instructions
(a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize
the adjusting entry at December 31, assuming Elburn determines that T. Thum’s
$1,400 balance is uncollectible.

(b) If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance,
journalize the adjusting entry at December 31, assuming bad debts are expected to be
(1) 1% of net sales, and (2) 10% of accounts receivable.

(c) If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance,
journalize the adjusting entry at December 31, assuming bad debts are expected to be
(1) 0.75% of net sales and (2) 6% of accounts receivable.

1 comment:

  1. Life is like riding a bicycle. To keep your balance, you must keep moving. See the link below for more info.


    #balance
    www.ufgop.org

    ReplyDelete