Question 33 6 pts During its first year of operations, Signature Lamp Company ea

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Question 33 6 pts During its first year of operations, Signature Lamp Company earned net credit sales of $314,000. Industry experience suggests that bad debts will amount to 4% of net credit sales. At December 31, 2016, accounts receivable total $45,000. The company uses the allowance method to account for uncollectables. 1) Journalize Signature's Bad Debt Expense using the percent-of-sales method. 2) Show how to accounts receivable would be presented on the Balance Sheet at December 31, 2016. HTML Editor U A x, Paragraph

Explanation / Answer

1)

2) Balance sheet (Partial):

General Journal Debit Credit Bad debt expense ($314,000 * 4%) $12,560 Allowance of bad debt $12,560

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