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Home Q & A Board Other Fields Homework Help Business Accounting
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Harrison Harrison
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6 years ago
StorageTek Corporation gathered the following information from its accounting records for the year ended December 31, 2014, prior to adjustment:

Net credit sales for the year   $1,150,000
Accounts Receivable (Dec. 31, 2014)   93,000
Allowance for Uncollectible Accounts, prior to
adjustment (Dec. 31, 2014)   6,000 (debit balance)

StorageTek Corporation uses the allowance method of accounting for bad debts and estimates bad debts at 2.5% of net credit sales.

Required:
a.   Prepare the adjusting entry on December 31, 2014.
b.   Determine the balance in the Allowance for Uncollectible Accounts account after the adjusting entry is recorded.
c.   Show how the receivables would be reported on the December 31, 2014, balance sheet for StorageTek Corporation.
Textbook 
Financial Accounting, Canadian Edition

Financial Accounting, Canadian Edition


Edition: 5th
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AlexmosutheAlexmosuthe
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