Question
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts
receivable: accounts receivable balance at the beginning of the
year, $450,000; allowance for uncollectible accounts at the
beginning of the year, $34,000 (credit balance); credit sales
during the year, $1,700,000; accounts receivable written off during
the year, $25,000; cash collections from customers, $1,850,000.
Assuming the company estimates bad debts at an amount equal to 3%
of credit sales.
1. Calculate bad debt expense for the year.
2. Calculate the year-end balance in the allowance
for uncollectible accounts.
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts
receivable: accounts receivable balance at the beginning of the
year, $360,000; allowance for uncollectible accounts at the
beginning of the year, $25,000 (credit balance); credit sales
during the year, $1,250,000; accounts receivable written off during
the year, $16,000; cash collections from customers, $1,150,000.
Assuming the company estimates bad debts at an amount equal to 3%
of credit sales.
1. Calculate bad debt expense for the year.
2. Calculate the year-end balance in...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts
receivable: accounts receivable balance at the beginning of the
year, $440,000; allowance for uncollectible accounts at the
beginning of the year, $33,000 (credit balance); credit sales
during the year, $1,650,000; accounts receivable written off during
the year, $24,000; cash collections from customers, $1,800,000.
Assuming the company estimates that future bad debts will equal 11%
of the year-end balance in accounts receivable.
1. Calculate the year-end balance in the
allowance for uncollectible accounts....
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...
At December 31, 2012, SPK Inc reported the following information on its balance sheet: Accounts Receivable...
At December 31, 2012, SPK Inc reported the following information
on its balance sheet:
Accounts Receivable 900,000
Allowance for Doubtful Accounts 54,000 (credit)
During 2013, the company had the following transactions related
to receivables:
Sales on Account 3,000,000
Collections on Account 2,850,000
Write-offs of uncollectible accounts 60,000
Recovery of previously written off accounts 12,000
A) Assume that bad debts are estimated to be 5% of year end
receivables, determine the Net Realizable Value (after adjustments)
of Accounts Receivable.
B) If...
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $220,000...
At the beginning of the current period, Sheridan Company had
balances in Accounts Receivable of $220,000 and in Allowance for
Doubtful Accounts of $13,000 (credit). During the period, it had
net credit sales of $703,000 and collections of $553,000. It wrote
off as uncollectible accounts receivable of $6,500. However, a
$4,000 account previously written off as uncollectible was
recovered before the end of the current period. Uncollectible
accounts are estimated to total $21,000 at the end of the
period.
(a)...
Beginning accounts receivable 155,000 Beginning allowance for doubtful accounts 5,430 Sales 2,057,000 Collections on account 1,777,000...
Beginning accounts receivable
155,000
Beginning allowance for doubtful accounts
5,430
Sales
2,057,000
Collections on account
1,777,000
Accounts written off
9,720
Collections of accounts previously written off
3,300
Current balance of bad debt expense
0
Uncollectible accounts as a percentage of receivables
3%
The accountant for Company A generated the above information.
Using the balance sheet approach, what is the ending balance of
bad debt expense for the year?
Mills Corporation's balance sheet included the following information: Accounts Receivable $ 430,000 Less: Allowance for Doubtful...
Mills Corporation's balance sheet included the following
information:
Accounts Receivable
$
430,000
Less: Allowance for Doubtful Accounts
58,000
Accounts Receivable, Net of Allowance
$
372,000
If the Allowance account had a credit balance of $24,000
immediately before the year-end adjustment for bad debts and no
accounts were written-off or allowed for during the year, what was
the amount of Bad Debt Expense recognized during the year?
Multiple Choice
$29,000
$24,000
$58,000
$34,000
The following information relates to Zulu Company’s accounts receivable for 2017: Accounts receivable, 1/1/2017 $ 750,000...
The following information relates to Zulu Company’s accounts
receivable for 2017:
Accounts receivable, 1/1/2017 $ 750,000
Credit sales for 2017 3,100,000
Accounts written off during 2017 45,000
Collections from customers during 2017 2,400,000
Estimated uncollectible accounts at 12/31/2017 95,000
A factor has recently offered to purchase all of Zulu’s
outstanding receivables without recourse for 94% of their face
amount.
Required:
At what net amount should Zulu report its receivables assuming
the company chooses to measure financial assets at fair value?
On December 31, 2019, Mills Manufacturing Ltd. had a $173,000 balance in its Accounts Receivable and...
On December 31, 2019, Mills Manufacturing Ltd. had a $173,000
balance in its Accounts Receivable and a $9,800 balance in its
Allowance for Doubtful Accounts. During 2020, the company made
total sales of $902,000, of which $218,000 were cash sales. By the
end of the year, Mills had received payments of $598,000 from its
customers on account. The company also wrote off as uncollectible
$13,800 of its receivables when it learned that these customers had
declared bankruptcy. The company was...
Rapture Company had the following information for the current year relating to accounts receivable: Accounts receivable,...
Rapture Company had the following information for the current
year relating to accounts receivable:
Accounts receivable, January 1
1,300,000
Credit sales
5,400,000
Collections from customer, excluding recovery
4,750,000
Accounts written off
125,000
Collection of accounts written off in prior year, customer
credit was not reestablished
25,000
Estimated uncollectible receivables per aging at December 31
165,000
What is the balance of accounts receivable, before allowance for
doubtful accounts, on December 31?
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 3 minutes ago
asked 4 minutes ago
asked 4 minutes ago
asked 4 minutes ago
asked 11 minutes ago
asked 24 minutes ago
asked 32 minutes ago
asked 54 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago