Module 2 Assignment Percent of Sales Method At the end of the current year, Accounts Receivable...

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Module 2 Assignment Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $540,000; Al

business accounting

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Answer 1

Answer #1

A. Amount of uncollectable accounts =$2,430,000×3/4 ×1%

=$18,225

B.

Accounts receivable =$540,000

Allowance for doubtful accounts =$23,225($5,000+$18,225)

Bad debt expense =$18,225

C.

Net realizable value =$540,000+$23,225

=$563,225

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Answer 2

Answer #2

A. $2,430,000X1/4X1%=$6,075

B.

$540,000

$2,430,000X1/4X1%=$6,075+$5000=$11,075

$6075

C. $540000-$11075=$528925

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Answer 3

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