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3. Splish Co. provides for doubtful accounts based on 3% of gross accounts receivable, The following...

3. Splish Co. provides for doubtful accounts based on 3% of gross accounts receivable, The following data are available for 2020.

Credit sales during 2020 $448,000
Bad debt expense 58,020
Allowance for doubtful accounts 1/1/20 17,340
Collection of accounts written off in prior years (customer credit was reestablished) 8,290
Customer accounts written off as uncollectible during 2020 29,650

What is the balance in Allowance for Doubtful Accounts at December 31, 2020?

Allowance for doubtful accounts 12/31/20

$
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Answer #1

Solution

Allowance for doubtful accounts 12/31/20 $ 54,000.00

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Beginning balance $     17,340.00
Add: Bad debts expense during year $     58,020.00
Add: Collection of accounts written off in prior years $       8,290.00
        83,650.00
Less: Customer accounts written off as uncollectible during 2020 $   (29,650.00)
Allowance for doubtful accounts 12/31/20 $     54,000.00
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