3. Adjustment required $ 95,000
The journal entry would therefore be as under:
Bad Debts Expenditure 95,000
Allowance for Doubtful Accounts 95,000
PROBLEM 8-2B (Continued)
(d)
*$960,000 – $78,000
**$1,318,000 – $109,000
Its average collection period is:
and P8-6B from Chapter 8
PROBLEM 8-6B
Jan. 5 Accounts Receivable—Flint Company 10,000
Sales Income 10,000
20 Notes Receivable 10,000
Accounts Receivable—Flint Company 10,000
Feb. 18 Notes Receivable 4,000
Sales Income 4,000
Apr. 20 Cash ($10,000 + $225) 10,225
Notes Receivable 10,000
Interest Income
4. ($10,000 X 9% X 3/12) 225
30 Cash ($12,000 + $360) 12,360
Notes Receivable 12,000
Interest Income
($12,000 X 9% X 4/12) 360
May 25 Notes Receivable 9,000
Accounts Receivable — Aberd Inc 9,000
Aug. 18 Cash ($4,000 + $160) 4,160
Notes Recei
http://uopexam.com/product/bus-591-week-4-assignment/
![Sales Income 3,600,000
2. Sales Returns and Allowances 50,000
Accounts Receivable 50,000
3. Cash 3,100,000
Accounts Receivable 3,100,000
4. Allowance for Doubtful Accounts 92,000
Accounts Receivable 92,000
5. Accounts Receivable 28,000
Allowance for Doubtful Accounts 28,000
Cash 28,000
Accounts Receivable 28,000
(b) Accounts Receivable Allowance for Doubtful Accounts
Bal. 960,000 (2) 50,000 (4) 92,000 Bal. 78,000
(1) 3,600,000 (3) 3,100,000 (5) 28,000
(5) 28,000 (4) 92,000 Bal. 14,000
(5) 28,000
Bal. 1,318,000
(c) Balance required $109,000
Balance before adjustment [see (b)] 14,000](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)