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    Classic Auto Parts Sells New and Used Auto Parts Although

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    M Bilal Saleem
    Classic Auto Parts sells both new and used auto parts. In 2016, its first year of operations, the company had $320,000 in credit sales and $680,000 in cash sales. It collected $295,000 of accounts receivable but had to write off $1,400 in uncollectible accounts. The document provides information about Classic Auto Parts' 2016 financials and asks questions about calculating accounts receivable, allowance for doubtful accounts, and uncollectible expense under both the allowance and direct write-off methods.

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    Classic Auto Parts Sells New and Used Auto Parts Although

    Uploaded by

    M Bilal Saleem
    27 views1 page
    Classic Auto Parts sells both new and used auto parts. In 2016, its first year of operations, the company had $320,000 in credit sales and $680,000 in cash sales. It collected $295,000 of accounts receivable but had to write off $1,400 in uncollectible accounts. The document provides information about Classic Auto Parts' 2016 financials and asks questions about calculating accounts receivable, allowance for doubtful accounts, and uncollectible expense under both the allowance and direct write-off methods.

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    Classic Auto Parts sells both new and used auto parts. In 2016, its first year of operations, the company had $320,000 in credit sales and $680,000 in cash sales. It collected $295,000 of accounts receivable but had to write off $1,400 in uncollectible accounts. The document provides information about Classic Auto Parts' 2016 financials and asks questions about calculating accounts receivable, allowance for doubtful accounts, and uncollectible expense under both the allowance and direct write-off methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    27 views1 page

    Classic Auto Parts Sells New and Used Auto Parts Although

    Uploaded by

    M Bilal Saleem
    Classic Auto Parts sells both new and used auto parts. In 2016, its first year of operations, the company had $320,000 in credit sales and $680,000 in cash sales. It collected $295,000 of accounts receivable but had to write off $1,400 in uncollectible accounts. The document provides information about Classic Auto Parts' 2016 financials and asks questions about calculating accounts receivable, allowance for doubtful accounts, and uncollectible expense under both the allowance and direct write-off methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Classic Auto Parts sells new and used auto parts Although

    Classic Auto Parts sells new and used auto parts. Although a majority of its sales are cash
    sales, it makes a significant amount of credit sales. During 2016, its first year of operations,
    Classic Auto Parts experienced the following: Sales on account .................... $320,000Cash
    sales ....................... 680,000Collections of accounts receivable .............. 295,000Uncollectible
    accounts charged off during the year ....... 1,400Requireda. Assume that Classic Auto Parts
    uses the allowance method of accounting for uncollectible accounts and estimates that 1
    percent of its sales on account will not be collected. Answer the following questions:(1) What is
    the Accounts Receivable balance at December 31, 2016?(2) What is the ending balance of the
    Allowance for Doubtful Accounts at December 31, 2016, after all entries and adjusting entries
    are posted?(3) What is the amount of uncollectible accounts expense for 2016?(4) What is the
    net realizable value of accounts receivable at December 31, 2016?b. Assume that Classic Auto
    Parts uses the direct write-off method of accounting for uncollectible accounts. Answer the
    following questions:(1) What is the Accounts Receivable balance at December 31, 2016?(2)
    What is the amount of uncollectible accounts expense for 2016?(3) What is the net realizable
    value of accounts receivable at December 31, 2016?View Solution:
    Classic Auto Parts sells new and used auto parts Although
    SOLUTION-- http://expertanswer.online/downloads/classic-auto-parts-sells-new-and-used-auto-
    parts-although/

    See Answer here expertanswer.online


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