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    The comparative balance sheet of Stuart Company

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    12. The comparative balance sheet of Stuart Company appears below: 20pt

    STUART COMPANY
    Comparative Balance Sheet
    December 31,

    Assets 2007 2006
    Current assets $ 340 $280
    Plant assets 675 520
    Total assets $1,015 $800

    Liabilities and stockholders
    ' equity
    Current liabilities $ 180 $120
    Long-term debt 250 160
    Common stock 325 320
    Retained earnings 260 200
    Total liabilities
    and stockholders' equity $1,015 $800

    Instructions
    (a) Using horizontal analysis, show the percentage change for each balance sheet item using 2006 as a base year.
    (b) Using vertical analysis, prepare a common size comparative balance sheet.

    13. The Brawn Company had a $400 credit balance in Allowance for Doubtful Accounts at December 31, 2007, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: 20pts
    Estimated Percentage
    Uncollectible
    Current Accounts $140,000 1%
    1-30 days past due 15,000 3%
    31-60 days past due 12,000 6%
    61-90 days past due 5,000 12%
    Over 90 days past due 7,000 30%
    Total Accounts Receivable $179,000

    Instructions
    a) Prepare the Estimated Uncollectible schedule for each percentage.
    b) Prepare the adjusting entry on December 31, 2007, to recognize bad debts expense.

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    https://brainmass.com/business/accounting/comparative-balance-sheet-stuart-company-307991

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