[TPayne14]

How will my balance sheet totals match once I made an adjustment to the AR account and allowance for uncollectible

[anayelii2002]

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")


Purchases………………...
E250,000 Freight In……………… E8,000
Sales discounts…………. 4,000 Purchase returns…….. 7,000
Inventory Sales…………………. 400,000
December 31, 20X1….. 20,000 Purchase discounts…. 3,000
December 31, 20X2….. 30,000 Sales returns…………. 8,000

Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)

Net sales revenue
Cost of goods sold
Gross profit

[morgaine300]

How will my balance sheet totals match once I made an adjustment to the AR account and allowance for uncollectible

The same way it matches any time you make any kind of adjustment. Every entry you do affects a balance sheet and/or income statement account. Your balance sheet coming out correctly is a very complicated combination of every entry that was ever made, posted and that affected these statements. The bad debt adjustment affects assets and expenses. Expenses affect net income. Net income affects equity, which is also a balance sheet account. So it ends up coming out in the end.

The question, as asked, doesn't make a whole lot of sense, because when you're doing adjusting entries, you don't have any reason to be thinking ahead to how your balance sheet is going to come out. Which leads me to suspect that there's something more specific you need to know than just how the balance sheet is going to balance out.

[morgaine300]

Anayelii, please start your own thread for you question. Two people's question on two different subjects is just confusing. And read our guidelines for posting homework questions that's at the top of this page:

https://www.askmehelpdesk.com/financ...-b-u-font.html