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# Elburn Company

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The ledger of Elburn Company at the end of the current year shows Accounts Receivable \$110,000, Sales \$840,000, and Sales Returns and Allowances \$28,000.

a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Elburn determines that Copp's \$1,400 balance is uncollectible.
b) If Allowance for Doubtful Accounts has a credit balance of \$2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable.
c) If Allowance for Doubtful Accounts has a debit balance of \$200 in the trial balance,
journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales, and (2) 6% of accounts receivable

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E9-2 The ledger of Elburn Company at the end of the current year shows Accounts Receivable \$110,000, Sales \$840,000, and Sales Returns and Allowances \$28,000.

a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Elburn determines that Copp's \$1,400 balance is uncollectible.
b) If Allowance for Doubtful Accounts has a credit balance of \$2,100 in the trial balance, ...

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This solution is comprised of a detailed explanation to answer the request of the assignment in text file.

\$2.19