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American Public University Operations And Supply Chain Management Assignment Help - Accounting

Question - Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the
allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt
accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-
end of December 31, an aging of accounts receivable schedule is prepared and the allowance for
uncollectible accounts is adjusted accordingly.
At the end of 2012, accounts receivable were $586,000 and the allowance account had a credit
balance of $50,000. Accounts receivable activity for 2013 was as follows:
Beginning balance $ 586,000
Credit sales 2,680,000
Collections (2,543,000 )
Write-offs (45,000 )
Ending balance $ 678,000
The company's ...Read More

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