mooonkey
Sep 27, 2015, 06:29 PM
Company had the following information relating to credit sales in 2009
Accounts receivable December 31, 2009
$
8,000
Allowances for doubtful accounts, Dec.31, 2009 (before adjustment)
$
750
Credit sales during 2009
$
38,000
Cash sales during 2009
$
12,000
Collections from customers on account during 2009
$
41,000
Using the percentage-of-sales method, what is the adjusted balance in the Allowance account at year-end 2009?
Accounts receivable December 31, 2009
$
8,000
Allowances for doubtful accounts, Dec.31, 2009 (before adjustment)
$
750
Credit sales during 2009
$
38,000
Cash sales during 2009
$
12,000
Collections from customers on account during 2009
$
41,000
Using the percentage-of-sales method, what is the adjusted balance in the Allowance account at year-end 2009?