Question
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning...
The following information relates to a company’s accounts
receivable: gross accounts receivable balance at the beginning of
the year, $370,000; allowance for uncollectible accounts at the
beginning of the year, $26,000 (credit balance); credit sales
during the year, $1,300,000; accounts receivable written off during
the year, $17,000; cash collections from customers, $1,200,000.
Assuming the company estimates that future bad debts will equal 9%
of the year-end balance in accounts receivable.
1. Calculate bad debt expense for the year.
2. Calculate the year-end balance in the allowance
for uncollectible accounts.
Homework Answers
Answer #1
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
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