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28 Sep 2019
(AICPA Adapted)
At January 1, 2010, the credit balance in the allowance fordoubtful accounts of the Master Company was $400,00. For 2010, theprovision for doubtful accounts is based on a percentage of netsales. Net sales for 2010 were $50,000,000. Based on the latestavailable facts, the 2010 provision for doubtful accounts isestimated to be 0.7% of net sales. During 2010 , uncollectiblereceivables amounting to $410,000 were written off against theallowance for doubtful accounts.
Required: Prepare a schedule computing the balance in Master'sallowance for doubtful accounts at December 31,2010. Showsupporting computations in good form.
(AICPA Adapted)
At January 1, 2010, the credit balance in the allowance fordoubtful accounts of the Master Company was $400,00. For 2010, theprovision for doubtful accounts is based on a percentage of netsales. Net sales for 2010 were $50,000,000. Based on the latestavailable facts, the 2010 provision for doubtful accounts isestimated to be 0.7% of net sales. During 2010 , uncollectiblereceivables amounting to $410,000 were written off against theallowance for doubtful accounts.
Required: Prepare a schedule computing the balance in Master'sallowance for doubtful accounts at December 31,2010. Showsupporting computations in good form.
At January 1, 2010, the credit balance in the allowance fordoubtful accounts of the Master Company was $400,00. For 2010, theprovision for doubtful accounts is based on a percentage of netsales. Net sales for 2010 were $50,000,000. Based on the latestavailable facts, the 2010 provision for doubtful accounts isestimated to be 0.7% of net sales. During 2010 , uncollectiblereceivables amounting to $410,000 were written off against theallowance for doubtful accounts.
Required: Prepare a schedule computing the balance in Master'sallowance for doubtful accounts at December 31,2010. Showsupporting computations in good form.
Patrina SchowalterLv2
28 Sep 2019