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Corporate Finance Assignment/ Professional Essay Writers

Author:
April 21st, 2020
On January 1, 2010, Smith, Inc., has the following balances for accounts receivable and allowance for doubtful accounts:
Accounts Receivable …………………………………………..$273,000
Allowance for Doubtful Accounts (a credit balance) …………. 4,600
During 2010, Smith had $2,175,000 of credit sales, collected $2,235,000 of accounts receivable, and wrote off $4,000 of accounts receivable as uncollectible. At year-end, Smith performs an aging of its accounts receivable balance and estimates that $4,500 will be uncollectible.
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Required:
1. Calculate Smith’s preadjustment balance in accounts receivable on December 31, 2010.
2. Calculate Smith’s preadjustment balance in the allowance for doubtful accounts on December 31, 2010.
3. Prepare the necessary adjusting entry for 2010.  Get Finance Help Today

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