Question
The Blue Taco reports 100,000 of A/R and 10,000 of ADA (CR) at the end of...
The Blue Taco reports 100,000 of A/R and 10,000 of ADA (CR) at the
end of last year. This year, they had credit sales of 500,000, cash
collections of 400,000, and wrote off 15,000 of bad debts. An
analysis of their accounts suggests that 5% of their receivables
will be uncollectible. What is: 1) Ending A/R? 2) Ending ADA? 3)
Bad debt expense?
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