During the year ended December 31, 2018, Kelly's Camera Shop had sales revenue of $140,000, of which$70,000 was on credit. At the start of 2018, Accounts Receivable showed a $11,000 debit balance and theAllowance for Doubtful Accounts showed a $540 credit balance. Collections of accounts receivable during2018 amounted to $62,000.Data during 2018 follow:a. On December 10, a customer balance of $1,200 from a prior year was determined to be uncollectible, soit was written off.b. On December 31, a decision was made to continue the accounting policy of basing estimated bad debtlosses on 2 percent of credit sales for the year.Required:1. Give the required journal entries for the two events in December.2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on thebalance sheet and income statement for 2018.3. On the basis of the data available, does the 2 percent rate appear to be reasonable?Complete this question by entering your answers in the tabs below.Reg 1Reg 2AReq 2BReq 3On the basis of the data available, does the 2 percent rate appear to be reasonable?Does the 2 percent rate appear to be reasonable?< Req 2BReq 3

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Give the required journal entries for the two events in December. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be balance sheet and income statement for 2018. On the basis of the data available, does the 2 percent rate appear to be reasonable?

Give the required journal entries for the two events in December. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be balance sheet and income statement for 2018. On the basis of the data available, does the 2 percent rate appear to be reasonable?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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