ACC 205 WEEK 2 EXERCISE ASSIGNMENT REVENUE AND EXPENSES(NEW)/Uoptutorial

(1) An aging schedule indicates that $12,420 of accounts receivable will be uncollectible.
(2) Uncollectible accounts are estimated at 2% of net sales.
b. On January 19, 20X3, Targa learned that House Company, a customer, had declared
bankruptcy. Present the proper entry to write off House’s $950 balance using the
allowance method.
c. Repeat the requirement in part (b), using the direct write-off method.
d. In light of the House bankruptcy, examine the allowance and direct write-off methods
in terms of their ability to properly match revenues and expenses.
10. Allowance method: analysis of receivables. At a January 20X2 meeting, the president
of Sonic Sound directed the sales staff “to move some product this year.” The president
noted that the credit evaluation department was being disbanded because it had restricted
the company’s growth. Credit decisions would now be made by the sales staff.
By the end of the year, Sonic had generated significant gains in sales, and the president
was very pleased. The following data were provided by the accounting department:
20X2
20X1
Sales
$23,987,000