Ask Question
4 November, 19:10

During the current year, Sun Electronics, Incorporated, recorded credit sales of $780,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales. a. On November 13 of the current year, an account receivable for $380 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year.

+2
Answers (1)
  1. 4 November, 22:51
    0
    Answer and Explanation:

    According to the scenario, computation of the given data are as follow:-

    Effects on transaction:-

    Transactions Assets Amount ($) Stockholder's equity Amount ($)

    a. Accounts receivable ($380) Bad-debt expense (780,000*2%) ($15,600)

    Allowance for doubtful accounts $380

    b. Allowance for doubtful accounts = ($780,000 * 2:100) = ($15,600)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “During the current year, Sun Electronics, Incorporated, recorded credit sales of $780,000. Based on prior experience, it estimates a 2 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers