A portion of the current assets section of the December 31, 2020, balance sheet for Carr Co.

Question:

A portion of the current assets section of the December 31, 2020, balance sheet for Carr Co. is presented here:

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The company?s accounting records revealed the following information for the year ended December 31, 2020:

Sales (all on account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? ? $800,000Cash collections from customers . . . . . . . . . . . . . . . . . . . . ? ? 820,000Accounts written off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? ? 30,000Bad debts expense (accrued at 12/31/20) . . . . . . . . . . . . ? ? 24,000

Required:

Using the information provided for 2020, calculate the net realizable value of accounts receivable at December 31, 2019, and prepare the appropriate balance sheet presentation for Carr Co., as of that point in time. Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts. Remember that you are solving for the beginning balance of each account.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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