uring its first year o operations, World Class Sport Shoes earned net credit sal
ID: 2436948 • Letter: U
Question
uring its first year o operations, World Class Sport Shoes earned net credit sales of S338,000 receivable total $42,000 The company uses the allowance method to account for uncollectibles Requirements ndustry experience suggests that bad debts wil amount to 3% of net credit sal Al December 31, 2016, a S 1 Journalize World Class' Bad Debts Expense using the percent-of-sales method 2. Show how to report accounts receivable on the balance sheet at December 31, 2016 d debits first, then credits Select the explanation on the last line of the journal entry table) Requirement 1. Jounalize World Class' Bad Debts Expense using the percent-of sales method (Recor Accounts and Explanation Debit Credit Date Dec 31 quirement 2. Show how to report accounts receivable on the balance sheet at December 31 2016 Choose from any list or enter any number in the input fields and then continue to the next questlon 22 PM O Type bere to searclExplanation / Answer
Requirement 1
Bad debts expense using percentage of sales method = net credit sales * percentage uncollectible.
= 338,000 * 3%
= 10,140
Requirement 2
Current Assets :
Date Accounts and Explanation Debit Credit Dec. 31 Bad debt expense 10,140 Allowance for doubtful debts 10,140 (Allowance for bad debts created at 3% of net credit sales)Related Questions
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