By January 31 each year, employers must furnish each employee ...

[burton19126]

By January 31 each year, employers must furnish each employee with a Wage and Tax Statement.
 a. True
   b. False
   Indicate whether the statement is true or false

Question 2

Gnu Company began business January 1, 2011. The company has a liberal credit policy and has been experiencing a high rate of uncollectible accounts.
 
  Due to the significance of this amount, the company uses the allowance method for accounting for bad debts. During 2011, credit sales were 400,000. The year-end accounts receivable balance was 170,000.
 
  Part A: Assume that the company uses the sales method and estimates that 5 of credit sales will become bad debts. Select the column which represents the financial statement where the item will appear, and fill in the correct dollar amount:
 
   Income Statement Balance Sheet
  1. Bad debts expense
  2. Net accounts receivable
  3. Sales
  4. Accounts receivable
  5. Allowance for uncollectible accounts
 
  Part B: Now assume that the company uses the accounts receivable method and estimates that 10 of accounts receivable will be uncollectible. Select the column which represents the financial statement where the item will appear, and fill in the correct dollar amount:
 
   Income Statement Balance Sheet
  1. Bad debts expense
  2. Net accounts receivable
  3. Sales
  4. Accounts receivable
  5. Allowance for uncollectible accounts

[jaygar71]

Answer to Question 1

True

Answer to Question 2

Part A:
Income Statement Balance Sheet
1.  20,000
2.  150,000
3.  400,000
4.  170,000
5.  (20,000)

Part B:
Income Statement Balance Sheet
1.  17,000
2.  153,000
3.  400,000
4.  170,000
5.  (17,000)

[burton19126]

Thanks for the timely response, appreciate it

[mjenn52]

Excellent