On January 1, 2010, Smith, Inc , has the following balances for accounts receivable and allowance for doubtful accounts Accounts Receivable $273,000 Allowance for Doubtful Accounts (a credit balance) 4,600 During 2010, Smith had $2,175,000 of credit sales, collected $2,235,000 of accounts receivabl...

1 Accounts Receivable Beginning Balance 273000 Sales 2175000 2235000 Collections 4000 Writeo ...

On January 1, 2010, Smith, Inc., has the following balances for accounts receivable and allowance for doubtful

Question:

On January 1, 2010, Smith, Inc., has the following balances for and allowance for doubtful .................. $273,000
Allowance for Doubtful Accounts (a credit balance) ..... 4,600
During 2010, Smith had $2,175,000 of credit sales, collected $2,235,000 of and wrote off $4,000 of as uncollectible. At year end, Smith performs an aging of its balance and estimates that $4,500 will be uncollectible.

Required:
1. Calculate Smith’s preadjustment balance in on December 31, 2010.
2. Calculate Smith’s preadjustment balance in allowance for doubtful accounts on December 31, 2010.
3. Prepare the necessary adjusting entry for 2010.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...