Maurice Tutor

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Category > Management Posted 30 Dec 2017 My Price 4.00

allowance method.

Journalize the transactions for 2016 under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, ¾% of credit sales are expected to be uncollectible. Shipway Company recorded $3,778,000 of credit sales during 2016. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.
C. How much higher (lower) would Shipway Company’s net income have been under the direct write-off method than under the allowance method?

 

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Maurice Tutor
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Status NEW Posted 30 Dec 2017 08:12 PM My Price 4.00

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