AFM101 Study Guide - Final Guide: Sun Microsystems, Abebooks, Opentext

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Donna Psutka

Document Summary

Both the examination paper and multiple choice card must be submitted. The calculator must be standalone with no communication or data storage features. Answer the following independent questions: (4 marks) sun microsystems, inc. recorded credit sales of ,575,000 for the fiscal year ending on december 31, 2009. In addition, the company allowed returns of ,000 during the year that were originally purchased on credit. The accounts receivable balance on december 31, 2008 was ,258,000 and the balance in the allowance for doubtful accounts was a ,000 credit. During 2009, management wrote off ,250 of accounts receivable as uncollectible. A review of prior years indicates that approximately two percent of net credit sales will not be collected. December 31, 2009, or explain why no entry is required: (4 marks) abebooks uses the aging method to estimate bad debt expense. The accountant prepared the following aging for the accounts receivable at year end: