The Following Information Was Taken from the Records of Alphabet

question 20

Essay

The following information was taken from the records of Alphabet Soup at the end of 2013:
Determine the following:
A)Gross sales
B)Net sales
C)Gross profit
Assuming the company uses the income statement approach to estimating uncollectibles:
D)Bad debt estimate percentage
E)Year-end adjusting entry to record bad debt expense
F)Ending balance in Allowance for Doubtful Accounts after adjustment
G)Net realizable value of receivables after adjustment for bad debts
Assuming the company uses the balance sheet approach to estimating uncollectibles:
H)Gross receivables
I)Ending balance in Allowance for Doubtful Accounts after adjustment
J)Net realizable value of receivables after adjustment for bad debts

• A)Gross sales
• B)Net sales
• C)Gross profit Assuming the company uses the income statement approach to estimating uncollectibles:
• D)Bad debt estimate percentage
• E)Year-end adjusting entry to record bad debt expense
• F)Ending balance in Allowance for Doubtful Accounts after adjustment
• G)Net realizable value of receivables after adjustment for bad debts Assuming the company uses the balance sheet approach to estimating uncollectibles:
• H)Gross receivables
• I)Ending balance in Allowance for Doubtful Accounts after adjustment
• J)Net realizable value of receivables after adjustment for bad debts

---

Definitions:

Competing Companies

Businesses that operate in the same market or industry and vie for the same customer base, market share, or resources.

Just-in-time Inventory Systems

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, reducing inventory costs.

Responsibility

involves the duty or obligation to perform or complete a task, with an inherent accountability for the successful completion and outcomes.

Vendors

Businesses or individuals that sell products or services to other businesses or consumers.