Perpetual System

Wk 3 Assignment 1 5-24, 5-26 5-24 Determining handbill balances: % of tax revenue accommodation method of history for unsound accounts The undermentioned data pertains to Lesliess Floor Store sales on account and accounts receivable: Account Receivable balance, January 1, 2012 $52,500 Allowance for indefinite accounts, January, 1, 2012 $4,725 sales on account, 2012 $925,000 Cost of goods sold, 2012 $615,000 Collections of accounts receivable, 2012 $835,000 Required a. Compute the following(a) amounts 1. Using the everyow method, the amount of big accounts expense for 2012 925,000 * 0.5 = bad debt of $4,625 2. bread achievable cheer of receivables at the end of 2012 $52,000 4,725 = $47,775 b. Explain why the uncollectible accounts expense amount is diametrical from the amount that was frame impinge on as uncollectible The amounts are different because when they do the write attain amount it is an estimated amount on what they thin k would probably written off and not standard from the customer 5-26 Determination of account balances - % of receivables wages method of accounting for uncollectible accounts During the 1st year of operation, 2012, Martins Appliance recognised $292,000 of service revenue on account. At the end of 2012, the accounts receivable balance was $57,400.

Even though this is the stolon in business, the owner believes he will collect all but almost 4% of the ending balance a. What amount of specie was sedate by Martins during 2012? $292,000-$57,400=$234,600 b. Assuming the use of an allowance musical ar rangement to account for uncollectible accou! nts, what amount should Martin record as uncollectible accounts expense in 2012? $57,400 * .04 = $2,296 c. What is the net realizable value of receivables at the end of 2012? $57,400 $2,296 = $55,104 d. Show the effects of the above proceedings on the financial statements by recording appropriate amounts in a horizontal statements model. When you record amounts in the...If you want to hit a full essay, order it on our website: OrderCustomPaper.com

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