Merlin Co. reports under ASPE with a December 31 fiscal year-end.


Question Description:

25

Merlin Co. reports under ASPE with a December 31 fiscal year-end. On January 2, the unadjusted balance in the allowance for doubtful accounts is a debit of $15,000.Previously, the allowance was established at 2% of accounts receivable, but recent industry analysis suggests that, going forward, the allowance should be established at4% of accounts receivable. If the year-end accounts receivable balance is $625,000, the correct year-end adjustment is a credit to the allowance for doubtful accounts for deccker44
posted a question ยท May 15, 2016 at 9:13am

Answer

25