Take a Test-Hayle Sanford- Microsoft Edge mat 183270713&centerwin; yes PRIN of A

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Take a Test-Hayle Sanford- Microsoft Edge mat 183270713&centerwin; yes PRIN of ACCT 1 (60) SUM18 (Coates) Test: Exam 5 Chapter 8-9 Time Remaining: 0157:29 Submit Test This Question: 7 pts 1 of 28 (1 complete) This Test: 100 pts possible During its first year of operations, Precious Gems Collection earned net credit sales of $371,000 Industry experience suggests that bad debts wil amount to 2% of net credit sales At December 31, 2018, accounts receivable total $41.000 The company uses the allowance method to account for uncollectibles Read the requirements Requirement 1. Journalize Precious Gems Bad Debls Expense using the percent-of-sales method. (Record debits first then credits. Select anation on the last line of the journal entry table ) Date Accounts and Explanation Debit Credit Dec 31 Requirement 2. Show how to report accounts receivable on the balance sheet at December 31, 2018 Balance Sheet (Partial): Current Assets Choose trom any list or enter any number in the input fields and then continue to the next question 11:54 PM d1/21/2018

Explanation / Answer

Solution 1:

Solution 2:

Journal Entries - Precious Gems Date Particulars Debit Credit 31-Dec Bad debts expense Dr ($371,000*2%) $7,420.00         To Allowance for doubtful accounts $7,420.00 (To record bad debts expense for the year)

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