Total gross sales for the period include the following: Credit card sales (discount 3%) $ 9,400 Sales on account (2/15, n/60) $ 10,500 Sales returns related to sales on account were $500. All returns were made before payment. One-half of the remaining sales on...

Aussie World Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2006 reveal the following . Ignore GST. Credit sales (for year) $1070000 Credit sales returns and allowances (for year) =90000 accounts receivable (balance 30 June 2006) =323500 allowance for...

Why would the allowance for doubtful accounts have a credit balance before the adjusting entry? If you estimate the write-off, don't you write-off that amount? Example: Year 2008 credit sales 8,700,000 Ada credit balance 32820 Using 1/4 of 1% So the estimate would be 21,750, then would I...