Before adjustments, Amie Company had the following balances on December 31, 2014:
a.Prepare the journal entry to record the estimated uncollectible accounts assuming Amie uses the percentage of receivables approach. An aging of the accounts receivable estimated the net realizable value of the receivables at December 31, 2014 is $57,800.
b.What is the Bad Debts Expense for 2014 if Amie uses the percentage of sales approach, and estimates that 1% of net credit sales will be uncollectible.

Question

Before adjustments, Amie Company had the following balances on December 31, 2014:
  a.Prepare the journal entry to record the estimated uncollectible accounts assuming Amie uses the percentage of receivables approach. An aging of the accounts receivable estimated the net realizable value of the receivables at December 31, 2014 is $57,800.
b.What is the Bad Debts Expense for 2014 if Amie uses the percentage of sales approach, and estimates that 1% of net credit sales will be uncollectible.

Quizplus · Accepted Answer

The Answer of Before adjustments, Amie Company had the following balances on December 31, 2014:
  a.Prepare the journal entry to record the estimated uncollectible accounts assuming Amie uses the percentage of receivables approach. An aging of the accounts receivable estimated the net realizable value of the receivables at December 31, 2014 is $57,800.
b.What is the Bad Debts Expense for 2014 if Amie uses the percentage of sales approach, and estimates that 1% of net credit sales will be uncollectible.

Before Adjustments, Amie Company Had the Following Balances on December