Author Question: On June 30, the accountant for Team Shirts was reviewing items related to accounts receivable. The ... (Read 56 times)

rachel9 · **on:** Jul 5, 2018

On June 30, the accountant for Team Shirts was reviewing items related to accounts receivable. The following information was gathered for June:

a. The April 1 balance in the Allowance for uncollectible accounts was (1,200).
b. 300 owed by the Power Pugs had been written off in June.
c. Credit sales for June were 7,000. The accountant for Team Shirts estimated that 3 of the sales would eventually be uncollectible.

1. What is the amount of bad debts expense for June? On which financial statement is it found?

2. What will be the amount in the Allowance for uncollectible accounts at June 30? On which financial statement is it found?

Question 2

The self-employment tax rate is double the rate of
a. Social Security and Medicare taxes.
b. FUTA taxes.
c. SUTA taxes.
d. property taxes.

blfontai · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

1. Bad debts expense = 210 (7,000 x 3) and is found on the income statement.
2. Allowance for uncollectible accounts = (1,110) (=(1,200) + 300 + (210)) appears on the balance sheet.

Answer to Question 2

a