Chapter 1 Problem 5-12
a. Doubtful accounts (3% x 8,000,000) 240,000
Allowance for doubtful accounts 240,000
b. Doubtful accounts 170,000
Allowance for doubtful accounts 170,000
Allowance – January 1 100,000
Doubtful accounts (squeeze) 170,000
Recovery 20,000
Total 290,000
Accounts written off 130,000
Allowance – December 31 (8% x 2,000,000) 160,000
c. Doubtful accounts 210,000
Allowance for doubtful accounts 210,000
Allowance – January 1 100,000
Doubtful accounts (squeeze) 210,000
Recovery 20,000
Total 330,000
Accounts written off 130,000
Allowance – December 31 200,000
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