. The Allowance Is To Be Increased To 3 Percent Of Accounts Receivable.

The accounts of Stackhouse Company as of 2010 December 31, show Accounts Receivable, USD 190,000, Allowance for Uncollectible Accounts, USD 950 (credit balance), Sales, USD 920,000, and Sales Returns and Allowances, USD 12,000. Prepare journal entries to adjust for possible uncollectible accounts under each of the following assumptions: a. Uncollectible accounts are estimated at 1 percent of net sales.b. The allowance is to be increased to 3 percent of accounts receivable.Jun 20 2014 05: 41 AM

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The Allowance Is To Be Increased To 3 Percent Of Accounts Receivable.

The accounts of Stackhouse Company as of 2010 December 31, show Accounts Receivable, USD 190,000, Allowance for Uncollectible Accounts, USD 950 (credit balance), Sales, USD 920,000, and Sales Returns and Allowances, USD 12,000. Prepare journal entries to adjust for possible uncollectible accounts under each of the following assumptions: a. Uncollectible accounts are estimated at 1 percent of net sales.b. The allowance is to be increased to 3 percent of accounts receivable.

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. The allowance is to be increased to 3 percent of accounts receivable.

Question

The accounts of Stackhouse Company as of 2010 December 31, show Accounts Receivable, USD 190,000; Allowance for Uncollectible Accounts, USD 950 (credit balance); Sales, USD 920,000; and Sales Returns and Allowances, USD 03,000. Prepare journal entries to adjust for possible uncollectible accounts under each of the following assumptions:

a. Uncollectible accounts are estimated at 1 percent of net sales.

b. The allowance is to be increased to 3 percent of accounts receivable.
Jun 20 2017 05:41 AM