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    Practice 2 - Estimation of Doubtful Accounts

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    Martha Nicole Maristela
    Happiness Company reported $8 million in sales, $2 million in accounts receivable, a beginning allowance for doubtful accounts balance of $100,000, $130,000 in accounts written off, and $20,000 recovered from accounts previously written off. Adjusting entries are required to estimate doubtful accounts under three methods: 3% of sales, 8% of accounts receivable, and $200,000 estimated from aging accounts receivable.

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    Practice 2 - Estimation of Doubtful Accounts

    Uploaded by

    Martha Nicole Maristela
    32 views1 page
    Happiness Company reported $8 million in sales, $2 million in accounts receivable, a beginning allowance for doubtful accounts balance of $100,000, $130,000 in accounts written off, and $20,000 recovered from accounts previously written off. Adjusting entries are required to estimate doubtful accounts under three methods: 3% of sales, 8% of accounts receivable, and $200,000 estimated from aging accounts receivable.

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    Practice 2_Estimation of Doubtful Accounts

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    Happiness Company reported $8 million in sales, $2 million in accounts receivable, a beginning allowance for doubtful accounts balance of $100,000, $130,000 in accounts written off, and $20,000 recovered from accounts previously written off. Adjusting entries are required to estimate doubtful accounts under three methods: 3% of sales, 8% of accounts receivable, and $200,000 estimated from aging accounts receivable.

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    Download as PDF, TXT or read online from Scribd
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    32 views1 page

    Practice 2 - Estimation of Doubtful Accounts

    Uploaded by

    Martha Nicole Maristela
    Happiness Company reported $8 million in sales, $2 million in accounts receivable, a beginning allowance for doubtful accounts balance of $100,000, $130,000 in accounts written off, and $20,000 recovered from accounts previously written off. Adjusting entries are required to estimate doubtful accounts under three methods: 3% of sales, 8% of accounts receivable, and $200,000 estimated from aging accounts receivable.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Happiness Company reported the following data at year-end:

    Sales 8,000,000
    Accounts receivable 2,000,000
    Allowance for doubtful accounts - Beg. Bal. 100,000
    Accounts written off 130,000
    Recovery of accounts previously written off 20,000

    Required:
    Prepare adjusting entries for doubtful accounts under each of
    the following method:
    A Percentage of sales -- 3% estimated
    B Percentage of AR -- 8% estimated
    C Aging -- P200,000 estimated

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