can you give an explanation I want to understand how it\'s done. Please :) thank

Question

can you give an explanation I want to understand how it's done. Please :) thanks for the help!

16 Assume that part of accounts and other receivables on Trejada Toys' balance sheet is $8 million as of February 2, 2014. Also assume that Allowance for Uncollectible Accounts has a credit balance of S275,000, that Trejada estimates its uncollectible accounts as 0.1 percent of net sales, and the amount of sales is $5,509,500,000. Record the adjusting entry to recognize uncollectible accounts using the percentage of net sales method. GENERAL JOURNAL Post. Ref. Debit Date Description Credit

Explanation / Answer

Answer:

Date

Description

Debit $

Credit $

2014-
February

Uncollectable account expanses
(5,509,500,000*0.1%)=5,509,500

5509500

To Allowance for uncollectable accounts

5509500

( to record the uncollectable accounts)

Explanation

here we have been given in the question that use percentage of the net sales to record the Uncollectable account expanses

so

Net sales =5,505,509,500,000

Peerage is =0.1%

So

uncollectable accounts

= 5,509,500,000*0.1 %

=5,509,500

Date

Description

Debit $

Credit $

2014-
February

Uncollectable account expanses
(5,509,500,000*0.1%)=5,509,500

5509500

To Allowance for uncollectable accounts

5509500

( to record the uncollectable accounts)

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