The Accounting Records of 10Com Ltd

question 2

Essay

The accounting records of 10Com Ltd. show the following for 2012:
*The credit side of the journal entry (or entries)related to this amount went to allowance for doubtful accounts.
** Account write-offs were debited to the allowance for doubtful accounts.
More Info
For 2012, cash sales were $970,000, while credit sales were $720,000. Recently, 10Com's management has become concerned about various estimates used in its accounting system, including those relating to receivables and uncollectible accounts. The company is considering two alternatives.
For the purpose of comparing these two alternatives, the company has made the following estimates for each alternative.
•Alternative 1: Bad debts approximating 0.7% of credit sales.
•Alternative 2: Aging of the accounts receivable at the end of the period, where 80% would incur a 2% loss, while the remaining 20% would incur a 9% loss.
Required:
For each of the two alternatives listed above, calculate the bad debts expense for 2012 and the allowance for doubtful accounts balance at the end of 2012.

Analyze the impact of population growth on economic development.

Understand the relationship between education, employment opportunities, and fertility rates among women in developing countries.

Recognize the significance of agriculture and its challenges in developing countries.

Identify strategies for improving economic development and public health in low-income countries.

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Definitions:

Background Information

Preliminary data or knowledge that provides context for a new study, discussion, or analysis.

Communication Noise

Any external or internal interference that disrupts the clarity, transmission, or reception of a message.

Interrupts

Unscheduled or unexpected disturbances that break the continuity of an activity or communication flow.

Transmission

The action or process of transmitting something (e.g., data, diseases, mechanical power) from one place, person, or thing to another.