Accounting -EXTRA CREDIT ASSIGNMENT – FALL 2015 – MILLER

EXTRA
CREDIT ASSIGNMENT – FALL 2015 – MILLER

Due at the beginning of
class Wednesday, October 7th. Must stay
for class and sign in on attendance sheet for credit. Will not be accepted later than ten minutes
after the hour. Worth a maximum of 10
points. Show all calculations. Journal entries must be in proper
format. Staple multiple pages
together. Do not use ink. Write your name and class time at the top of
each page.

Shamrock Company
Shamrock Company sells their merchandise only on account. The
following data are available at December 31, 2014.

Sales

$512,000

Sales returns and allowances
Sales discounts

10,000
2,000

Allowance for doubtful accounts at
January 1, 2014 (credit balance)

3,500

Accounts receivable, December 31, 2014

200,000

1.
Prepare the journal entry necessary on December 31, 2014 if the
company estimates that bad debt expense should be 2% of net credit sales.

2.
Prepare the journal entry necessary on December 31, 2014 if the
company estimates that 5% of accounts receivable will be uncollectible.

3.
Assume that the Allowance for Doubtful Accounts at January 1, 2014
has a debitbalance of $2,500. Prepare the journal entry necessary on
December 31, 2014 if the company estimates that 5% of accounts receivable will
be uncollectible.

4.
Assume that on March 1, 2015, the company writes off an
uncollectible account in the amount of $1,500.
Prepare the necessary journal entry on March 1st.

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