Accounting Records of Sine

Accounting Records of Sine in $29 Only

The accounting records of Sine. Com Limited provided the following for 20X9:

Balance in accounts receivable, 1 January 20X9 ……….. $ 90,000

Balance in accounts receivable, 31 December 20X9………. 120,000

Balance in allowance for doubtful accounts, 1 January 20X9…. 3,000 (cr.)

Accounts already written off as uncollectible during 20X9……. 5,500Cash sales were $ 900,000, while credit sales were $ 650,000. Recently, Sine. Com’s management has become concerned about various estimates used in its accounting system, including those relating to receivables and uncollectible accounts. The company is considering various alternatives with a view to selecting the most appropriate approach and related estimates. For analytical purposes, the following 20X9 alternative estimates have been developed for consideration: