Question

Allowance for Doubtful Accounts based on Net Credit Sales: Question 1 Net Credit Sales: $123,000.00 Accounts Receivable: $20,000.00 Allowance for Doubtful Accounts: $800.00 Estimated Bad Debts are Based on 6.00% of Net Credit Sales. What is the Ending Net Accounts Receivable?

Answer 1

• Net Accounts receivables = Accounts receivables balance – Allowance for Doubtful Accounts

A	Net Credit Sale	$         123,000.00
B = A x 6%	Estimated bad Debt Expense	$             7,380.00
C	Allowance for Doubtful Account unadjusted balance	$                 800.00
D = B + C	Adjusted balance of Allowance account after Bad Debt expense	$             8,180.00
E	Accounts receivables	$           20,000.00
F = E - D	Ending Net Accounts receivables	$           11,820.00

• Answer = $ 11,820