Prepare Journal Entries for the Following Independent Situations

question 56

Essay

Prepare journal entries for the following independent situations.
a)The allowance for doubtful accounts has a $525 debit balance prior to adjustment. An aging schedule prepared on December 31 reveals uncollectible accounts of $7,600.
b)The allowance for doubtful accounts has a $500 credit balance prior to adjustment. An aging schedule prepared on December 31 reveals uncollectible accounts of $7,800.
c)The allowance for doubtful accounts has a $700 credit balance prior to adjustment. Net credit sales during the year are $260,000 and 4% are estimated to be uncollectible.
d)The allowance for doubtful accounts has a $800 credit balance prior to adjustment. Net credit sales during the year are $270,000 and 3.5% are estimated to be uncollectible receivable.

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Definitions:

Asset Allocation

The process of dividing investments among different asset categories, such as stocks, bonds, and cash, to optimize risk and return.

Equities

Financial assets representing ownership interest in a company, typically in the form of shares of stock.

Surf Forecasting Software

A specialized software application that uses meteorological and oceanographic data to predict wave conditions and surf quality at various beaches.

Real Asset

Tangible property such as real estate, commodities, and physical goods that have intrinsic value due to their substance and physical properties.