1.At the end of the first year of operations, Mayberry Advertising had accounts receivable of $22,000. Management of the
Posted: Fri Jul 01, 2022 8:29 am
1.At the end of the first year of operations, MayberryAdvertising had accounts receivable of $22,000. Management of thecompany estimates that 12% of the accounts will not becollected.What adjustment would Mayberry Advertising record toestablish Allowance for Uncollectible Accounts?
2. At the end of the year, Mercy Cosmetics’ balance ofAllowance for Uncollectible Accounts is $520 (credit)before adjustment. The balance of Accounts Receivable is $21,000.The company estimates that 10% of accounts will not be collectedover the next year. What adjustment would Mercy Cosmeticsrecord for Allowance for Uncollectible Accounts?
2. At the end of the year, Mercy Cosmetics’ balance ofAllowance for Uncollectible Accounts is $520 (credit)before adjustment. The balance of Accounts Receivable is $21,000.The company estimates that 10% of accounts will not be collectedover the next year. What adjustment would Mercy Cosmeticsrecord for Allowance for Uncollectible Accounts?