Stone furniture store has credit sales of $400,000 in 2008 and a debit balance of $600 in the allowance for doubtful accounts at year end. as of december 31, 2008, $130,000 of accounts receivable remain uncollected. the credit manager prepared an aging schedule of accounts receivable and estimates that $3,000 will prove to be uncollectible. on march 4, 2009, the credit manager authorizes a write-off of the $1,000 balance owed by a. lowell. required: (a) prepare the adjusting entry to record the estimated uncollectible accounts expense in 2008. (b) show the balance sheet presentation of accounts receivable on december 31, 2008. (c) on march 4, before the write-off, assume the balance of accounts receivable account is $160,000 and the balance of allowance for doubtful accounts is a credit of $2,000. make the appropriate entry to record the write-off of the lowell account. also show the balance sheet presentation of accounts receivable before and after the write-off.

Abigail spent $100 on a new edition of the personal finance textbook rather than $75 for a used copy. the additional cost for the new copy is called the

If temper company, a manufacturer of mattresses, was considering moving its production facilities to china but decided against it because the additional costs of shipping the mattresses back to the u.s. would offset the cost savings associated with moving the production facilities, the increased costs associated with shipping would be an example ofanswers: learning-curve economies.diseconomies of scale.economies of scale.competitive advantages.

Ming chen began a professional practice on june 1 and plans to prepare financial statements at the end of each month. during june, ming chen (the owner) completed these transactions. a. owner invested $61,000 cash in the company along with equipment that had a $25,000 market value. b. the company paid $1,900 cash for rent of office space for the month. c. the company purchased $15,000 of additional equipment on credit (payment due within 30 days). d. the company completed work for a client and immediately collected the $2,100 cash earned. e. the company completed work for a client and sent a bill for $7,000 to be received within 30 days. f. the company purchased additional equipment for $5,500 cash. g. the company paid an assistant $3,000 cash as wages for the month. h. the company collected $5,200 cash as a partial payment for the amount owed by the client in transaction e. i. the company paid $15,000 cash to settle the liability created in transaction c. j. owner withdrew $1,500 cash from the company for personal use. required: enter the impact of each transaction on individual items of the accounting equation. (enter decreases to account balances with a minus sign.)