The Following Information Is Available for K

question 158

Essay

The following information is available for K.M.R.Company,which uses the allowance method of accounting for uncollectible accounts. K.M.R.estimates that 1% of sales on account will be uncollectible.After several attempts at collection during 2012,K.M.R.wrote off an account of $200 that could not be collected.
Required:
Indicate the effects on the financial statements of the following events:
a)2012 sales
b)2012 collections on account
c)Write-off of the uncollectible account
d)Uncollectible accounts expense for 2012
Round amounts to nearest dollar.Show amounts of increases and decreases.For cash flows,indicate whether they are operating,investing,or financing activities.

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Definitions:

Convenience Products

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Shopping Product

Item typically purchased only after the buyer has compared competing products in competing stores.

Old Mattress

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Soft-Foam Mattress

A type of mattress made from pliable foam materials designed to offer support and comfort by conforming to the body's shape.