Gary, Inc Had the Following Sales During 2013: Gary Also

question 9

Essay

Gary, Inc. had the following sales during 2013: Gary also had the following beginning and ending balances in the receivables accounts: Gary, who uses the allowance method of accounting for uncollectible accounts, estimated that 3% of the credit sales will go uncollected. The credit card company charges Gary a 4% service charge.
Required:
a) Prepare Gary's year-end adjusting journal entry for uncollectible accounts expense.
b) Prepare the entry to record the credit card sales.
c) What is Gary's cash flow from customers for the year?

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Definitions:

Trade Deficit

A situation where a country imports more goods and services than it exports, resulting in a negative balance of trade.

Foreign Assets

Investments or properties owned by individuals, companies, or governments in countries other than their own.

Trade Balance

The difference in value between a country's imports and exports over a certain period, indicating the relative strength of its economy.

Net Capital Outflow

The sum representing a country's outbound investments minus its inbound investments from abroad over a specific period.