2013年11月3日星期日

Accounting problem, need help?

  • account receivable balance
  • receivable accounts
  • credit card debts
The ledger of Montgomery Company at the end of the current year shows Accounts Receivable $76,000; Credit Sales $982,000; and Sales Returns and Allowances $51,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)


(a) If Montgomery uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Montgomery determines that Baruth’s $870 balance is uncollectible.

(b) If Allowance for Doubtful Accounts has a credit balance of $1,000 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 12% of accounts receivable.

(c) If Allowance for Doubtful Accounts has a debit balance of $840 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.

Accounting problem, need help?

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