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question show all calculations journal entries must be in properformat shamrock comp 4290972

Question

Show all calculations. Journal entries must be in properformat.

Shamrock Company

Shamrock Company sells their merchandise only on account. Thefollowing 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 (creditbalance)

          3,500

Accounts receivable, December 31, 2014

        200,000

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

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

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

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

 

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