61901
Nov 23, 2009, 03:07 AM
The income statement approach to estimating uncollecteble accounts expense is used by Burgess wholesales. On march 31 the firm had accounts receivable in the amount of $630,000. The allownce for doubtful accounts had a credit balance of $3,950. The controller estimated that uncollectable accounts expense would amount to one-half of 1% of the $5,200,000 of the net sales made during march. This astimate was entered in the accounts by an adjusting entry on march 31.
On April 12, an account receivable from Conrad Stern of $3,110 was detrmined to be worthless and was written off. However on April 24, stern won several thousands dollars on a TV game show and immediately paid the $3,110 past-due account.
ANYBODY CAN SOLVE THIS PROBLEM.
On April 12, an account receivable from Conrad Stern of $3,110 was detrmined to be worthless and was written off. However on April 24, stern won several thousands dollars on a TV game show and immediately paid the $3,110 past-due account.
ANYBODY CAN SOLVE THIS PROBLEM.