|
|
2012 |
2011 |
| from the income statement: |
|
|
| Net sales |
729373 |
678960 |
| from the balance sheet: |
|
|
| Accounts receivable, net |
14919 |
15036 |
| Customer deposits |
65465 |
62649 |
| from the disclosure on Allowance fro doubdful accounts: |
|
| Balance at the beginning of period |
1171 |
1160 |
| Additions (reductions) charged to income |
9 |
11 |
| Adjustments or deductions |
-70 |
0 |
| Balance at the end of period |
1110 |
1171 |
a)Prepare a Finansial statements effect template entry to record accounts receivable written off as uncollectible in 2012
Also prepare the FSET entry to record the provision for doubtful accounts (dab debts expense) for 2012. What effect did these entries have on income for that year?
b)Calculate gross receivables for the years given, and then determine the allowance for doubtful accounts as a percentage of the gross receivables.