The Following Information Was Taken from the Records of Alphabet

question 122

Essay

The following information was taken from the records of Alphabet Soup at the end of Year 1:
$\begin{array}{lr}\text { Cash sales } & \$ 1,000,000 \\\text { Credit sales } & 500,000 \\\text { Sales discounts } & 5,000 \\\text { Accounts receivable } & 250,000 \\\text { Allowance for doubtful accounts (before adjustment) } & (25,000) \\\text { Estimated uncollected accounts } & 2,475 \\\text { Cost of goods sold } & \$ 975,000\end{array}$
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

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Definitions:

Subjective Experiences

Individual, personal perceptions and feelings that are influenced by one's own unique perspectives and mental processes.

Individual's Personality

The distinctive and enduring pattern of thoughts, feelings, and behaviors that characterize a person's responses to life's situations.

Unconditional Love

A type of affection and care given without any expectations or limitations, often considered the purest form of love.

Healthy Personality

A concept referring to an individual's psychological state, characterized by well-being, adaptive coping strategies, resilience, and the capacity for growth and relationships.