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    glendagill2003's Avatar
    glendagill2003 Posts: 1, Reputation: 1
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    #1

    Nov 18, 2009, 11:52 AM
    Analyze effects of accounts receivable transaction: percentage of sales method.
    At the beginning of 2008 Darcy's Floor Coverings had the following account balances: Accounts Receivable $325,000 and Allowance for rUncollectible Accounts @7,500 (credit). During the year credit sales were @825,000 sales returns and allowances were $31,750 and $10,000 of specific customer accounts were written off. Collections on accounts receivable were $622,000. At year-end, Darcy's Floor Covering estimated that 5% of net sales were uncollectiable.

    What is the net realizable value of Accounts Receivable at year-end and what amount of bad debts expense will appear on the income statement for 2008?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Nov 18, 2009, 07:15 PM
    Please see the guidelines for posting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html

    There have been numerous questions about bad debt -- you can search this and the homework forum for some detailed info on this subject.
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