Question: Refer to the information in E5-19, but now assume that the balance of the Allowance for Uncollectible Accounts on December 31, 2012, is $1,000 (debit) (before adjustment).
Required: 1. Record the adjustment for uncollectible accounts using the percentage-ofreceivables method. Suzuki estimates 10% of receivables will not be collected.
2. Record the adjustment for uncollectible accounts using the percentage-of-creditsales method. Suzuki estimates 2% of credit sales will not be collected.
3. Calculate the effect on net income (before taxes) and total assets in 2012 for each method.
E5-19: Suzuki Supply reports the following amounts at the end of 2012 (before adjustment)
Required: 1. Record the adjustment for uncollectible accounts using the percentage-ofreceivables method. Suzuki estimates 10% of receivables will not be collected.
2. Record the adjustment for uncollectible accounts using the percentage-of-creditsales method. Suzuki estimates 2% of credit sales will not be collected.
3. Calculate the effect on net income (before taxes) and total assets in 2012 for each method.