133. Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases. Indicate the ending balance in each case.
(a)
Credit balance of $300 in the allowance account just prior to adjustment. Analysis of accounts receivable indicates doubtful accounts of $8,500.
(b)
Credit balance of $500 in the allowance account just prior to adjustment. Uncollectible accounts are estimated at 2% of sales, which totaled $1,000,000 for the year.
134. Blowout Sales has gross sales of $1,525,000. Of these sales, $1,175,000 were on accounts receivable. During the year of 2009 there were sales returns and allowances and sales discounts on sales made on account of $55,000. Blowout Sales calculates that 5 1/2% of the period sales less sales returns and allowances and sales discounts will be uncollectible.Calculate the net realizable value of sales and write the journal entry to recognize the period expense of uncollectible accounts.
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