Question

# Gill Co. prepared an aging of its accounts receivable at December 31, 20x5, and determined that...

Gill Co. prepared an aging of its accounts receivable at December 31, 20x5, and determined that the net realizable value of the receivables was \$303955. Additional information is available as follows:

 Bad debt expense for 20x5 \$4663 Accounts written off as uncollectible during 20x5 11531 Accounts receivable at December 31, 20x5 320993 Uncollectible accounts recovery during 20x5 2863

What was the credit balance in the allowance for doubtful accounts at Jan 1, 20x5?

Select one:

a. \$21043

b. \$307960

c. \$18838

d. \$324998

Net realizable value of accounts receivable = Accounts receivable - Ending balance in allowance for doubtful accounts

\$303,955 = \$320,993 - Ending balance in allowance for doubtful accounts

Ending balance in allowance for doubtful accounts = \$17,038

Ending balance in the allowance for uncollectible accounts = Beginning balance + Bad debt expense - Accounts written off + Recovery of uncollectible accounts

\$17,038 = Beginning balance + \$4,663 - 11,531 + 2,863

Beginning balance = \$21,043

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