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PROBLEM 7-2 1. Net sales $1,500,000 Percentage 1 1/2 % Bad debt expense $ 22,500 2. Accounts receivable $1,750,000 Amounts estimated to be uncollectible (180,000) Net realizable value $1,570,000 3. Allowance for doubtful accounts 1/1/07 $17,000 Establishment of accounts written off in prior years 8,000 Customer accounts written off in 2007 (30,000) Bad debt expense for 2007 ($2,100,000 X 3% ...

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SOLUTIONS TO EXERCISES EXERCISE 7-1 (10–15 minutes) (a) Cash includes the following: 1. Commercial savings account— First National Bank of Yojimbo $ 600,000 1. Commercial checking account— First National Bank of Yojimbo 900,000 2. Money market fund—Volonte 5,000,000 5. Petty cash 1,000 11. Commercial Paper (cash equivalent) 2,100,000 12. Currency and coin on hand 7,700 Cash …

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CHAPTER 7

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CHAPTER 7

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CHAPTER 7

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