Accounts receivable balance on 1 January 2015 is 400. Impairment for doubtful accounts receivable balance on 1 January 2015 is 40. During 2015 sales…

Accounts receivable balance on 1 January 2015 is £400.2. Impairment for doubtful accounts receivable balance on 1 January 2015 is £40.3. During 2015 sales were £3,000. Eighty percent of the sales were credit sales. Salesreturn in respect of credit sales were £100. There were no returns in respect of cashsales.4. Cash collected on accounts receivables during 2015 was £1,000.5. Accounts receivable written-off as bad debt expenses during 2015 were £30. Thewritten-off accounts receivable had been considered doubtful as of the end of 2014.Required:a. Record the write-off of uncollectible bad debt during 2015.b. Calculate the impairment for doubtful accounts receivable and record theappropriate accounting entry on 31 December 2015 for each of the followingindependent assumptions:(i)The end of year balance of the impairment for doubtful accounts is based on theending balance of accounts receivable. The accountant of the Conett Companyestimates, from past experience, that 10% of the 31 December 2015 accountsreceivable will prove to be doubtful.(ii)The end of year balance of the impairment for doubtful accounts is based on net credit sales. The accountant estimates that 5% of the net credit sales will prove tobe doubtful.The post Accounts receivable balance on 1 January 2015 is 400. Impairment for doubtful accounts receivable balance on 1 January 2015 is 40. During 2015 sales… appeared first on Brainy Term Papers.Accounts receivable balance on 1 January 2015 is 400. Impairment for doubtful accounts receivable balance on 1 January 2015 is 40. During 2015 sales… was first posted on November 26, 2020 at 2:37 pm.©2019 “Brainy Term Papers”. Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at [email protected]  “Are you looking for this answer? We can Help click Order Now”

 

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