Consider the Following INDEPENDENT Situations for XYZ Company

question 165

Essay

Consider the following INDEPENDENT situations for XYZ Company:
a. The Allowance for Uncollectible Accounts has a $1,200 credit balance prior to adjustment. Net credit sales during the year are $830,000 and 4% are estimated to be uncollectible. Accounts Receivable has a balance of $110,000 at the beginning of the year.
b. The Allowance for Uncollectible Accounts has a $900 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared at the end of the year, $17,900 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $104,000 at the end of the year.
c. The Allowance for Uncollectible Accounts has a $16,300 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared at the end of the year, $20,000 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $958,000 at the end of the year.
d. The Allowance for Uncollectible Accounts has a $500 credit balance prior to adjustment. Net credit sales during the year are $900,000 and 5% are estimated to be uncollectible. Accounts Receivable has a balance of $825,000 at the end of the year.
Prepare the adjusting journal entries needed for each INDEPENDENT situation.

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Definitions:

Target Marketing

The process of identifying and communicating with specific segments of the market that are considered more likely to buy a particular product or service.

Mass Production

A manufacturing method that produces large quantities of standardized products, often on assembly lines, enabling economies of scale and cost reduction.

Mass Marketing

A marketing strategy aiming to appeal to a large, general audience by using widespread distribution and media channels.

Confidence Interval

A span of values obtained from statistical samples, which is probable to include the value of an unknown population parameter.