Quiz Ch 05 – Smith Company

Financial Accounting

Thomas, Tietz, and Harrison

12th Edition

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Smith Company has credit sales of $1,000,000, sales returns and allowances of $10,000, accounts receivable of $560,000, and an allowance for uncollectible accounts (debit) of $42,000 at year-end. Using the percent-of-sales method, if uncollectible accounts were estimated at 1% of credit sales in the prior year and no year-end adjusting entry has been made for Uncollectible-Account Expense, what action should the company take in regards to uncollectible accounts?

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  • Search Terms: d) % a accounts accounts(debit) , the action adjusting allowances , accounts and at available: credit b change company credit credit c) current direct end entry especially estimate estimated expense. extension following for has in increase information method method b) not of percent-of-sales percentage policies, prepared prior receivable , allowance reexamine regards returns sales $,, sales sales. should smith take the to uncollectible uncollectible-account uses were what write-off year, year-end year? a)
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