Preparing adjustments for uncollectibe accounts

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Question - Preparing adjustments for uncollectibe accounts, depreciation, and payroll items.

For each of the following independent sitautions, prepare the adjusting entry that must be made at December 31, 20x1. Omit descriptions.

a. During the year 20x1, Alenikov Company had net credits sales of $2,020,000. Past experience shows that 1.5 percent of the firm's net credit sales result in uncollectible accounts.

b. Equipment purchased by Fronke Consultancy for $42,500 on January 2, 20x1, has an estimated useful life of eight years and an estimated salvage value $3,500. Prepare the adjusting entry to record depreciation for the year ended December 31, 20x1.

C. On December 31,20x1, Moloney Plumbing supply owed wages of $12,200 to its factory employees, who are paid weekly

D. On December 31, 20x1, Moloney Plumbing Supply owed the employer's social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $12,200 of accrued wages for its factory employees.

E. On December 31, 20x1, Moloney Plumbing Supply owed Federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $12,200 of accrued wages for its factory employees.

Reference no: EM132825055

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