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Credit cards: Journal entry Click following link to download this documentCredit cards – Journal entry.docx

FIFO versus LIFO Click following link to download this documentFIFO versus LIFO.docx

Financial statement analysis: Horizontal analysis Horizontal analysis can be used with any financial statement. Business decision-makers use horizontal analysis to assess the soundness and performance of a company based on detected trends of increase and decrease. These trends are also used to project future performance and financial position. The change in dollar amount of income

Financial statement analysis: Vertical analysis Click following link to download this documentFinancial statement analysis Vertical analysis.docx

On January 2, 2016, Davis Company purchased land that cost $540,000, a building on the land that cost $1,170,000, and equipment that cost $37,000. The building has an estimated useful life of 26 years. The equipment has an estimated useful life of 5 years. Required: Prepare the property, plant, and equipment section of the balance

Accounts receivable in the balance sheet Click following link to download this documentAccounts receivable in the balance sheet.docx

Allowance method: Journal entry There are several entries required in this problem.First, an entry is made to write off the uncollectible account. When cash is received from a company whose account has been written off, there are two additional entries required. First, the Scott Company’s account must be reinstated. Second, the cash payment must be

Bad debts expense: Balance sheet approach Under the balance sheet approach, bad debts expense is computed by a two-step process. First, the balance in Accounts Receivable is multiplied by the estimated uncollectible percentage. The result is the desired ending balance in the Allowance account. Desired ending balance in the Allowance account = Balance in Accounts Receivable × Estimated

Bad debts expense: Direct write-off method Click following link to download this documentBad debts expense – Direct write-off method.docx

Bad debts expense: Percentage of sales method Under the income statement approach, called the percentage of sales method, bad debts expense is computed by multiplying the estimated credit loss (uncollectible amounts) percentage by the amount of net credit sales for the year. First, we must determine the amount of the credit sales for the year: Credit sales = Net