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On December 31 2016 certain account balances at Galliano Company were as follows before yearend adjustments Accounts Receivable

On December 31, 2016, certain account balances at Galliano Company were as follows before yearend adjustments: Accounts Receivable ……………………………………… $ 1,873,000 Allowance for Uncollectible Accounts (credit) …………………. 3,721 Sales ………………………………………………………. 18,411,000 Sales Returns and Allowances …………………………………. 77,300 A further examination of the records showed that the “Sales” included $1,912,400 million of cash sales during the year. Of the sales returns and allowances, $66,600 came from credit sales. Assume that Galliano Company estimates its losses from uncollectible accounts to be 0.2 percent of net credit sales. Compute the estimated amount of Uncollectible Accounts Expense for 2016 and prepare the journal entry to record the provision for uncollectible accounts? View Solution:

Apr 01 2020 View more View Less

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