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  • Gilmore Electronics Had The Following Data For A Recent Year Cash

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    Gilmore Electronics reported $135,000 in cash sales and $512,000 in credit sales for a recent year. They determined $9,650 of accounts receivable to be uncollectible and estimated their bad debt expense at 2.2% of credit sales. The document provides data to calculate journal entries for writing off uncollectible accounts and estimating bad debt expense, and to calculate how bad debt expense and income from operations would change under different assumptions.

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    Gilmore Electronics Had the Following Data for a Recent Year Cash

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    Gilmore Electronics reported $135,000 in cash sales and $512,000 in credit sales for a recent year. They determined $9,650 of accounts receivable to be uncollectible and estimated their bad debt expense at 2.2% of credit sales. The document provides data to calculate journal entries for writing off uncollectible accounts and estimating bad debt expense, and to calculate how bad debt expense and income from operations would change under different assumptions.

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    12 views1 page

    Gilmore Electronics Had The Following Data For A Recent Year Cash

    Uploaded by

    Freelance Worker
    Gilmore Electronics reported $135,000 in cash sales and $512,000 in credit sales for a recent year. They determined $9,650 of accounts receivable to be uncollectible and estimated their bad debt expense at 2.2% of credit sales. The document provides data to calculate journal entries for writing off uncollectible accounts and estimating bad debt expense, and to calculate how bad debt expense and income from operations would change under different assumptions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Gilmore Electronics had the following data for a recent

    year Cash #2349


    Gilmore Electronics had the following data for a recent year:Cash sales ......................
    $135,000Credit sales ..................... 512,000Accounts receivable determined to be uncollectible
    ...... 9,650The firm’s estimated rate for bad debts is 2.2 percent of credit sales.Required:1.
    Prepare the journal entry to write off the uncollectible accounts.2. Prepare the journal entry to
    record the estimate of bad debt expense.3. By how much would bad debt expense reported on
    the income statement have changed if Gilmore had written off $3,000 of receivables as
    uncollectible during the year?4. Assuming Gilmore’s estimate of bad debts is correct (2.2
    percent of credit sales) and their gross margin is 20 percent by how much did Gilmore’s income
    from operations increase assuming $150,000 of the sales would have been lost if credit sales
    were not offered?View Solution:
    Gilmore Electronics had the following data for a recent year Cash

    ANSWER
    http://paperinstant.com/downloads/gilmore-electronics-had-the-following-data-for-a-recent-year-
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