During its first year of operations, World Wide Travel earned revenue of $620,000 on account. Industry experience

Question:

During its first year of operations, World Wide Travel earned revenue of $620,000 on account. Industry experience suggests that World Wide Travel’s uncollectible accounts will amount to 3 percent of revenues. On December 31, 2018, accounts receivable totaled $177,400. The company uses the allowance method to account for uncollectibles. Journalize World Wide Travel’s Bad Debt Expense using the percent-of-sales method. Show how World Wide Travel should report Accounts Receivable on its balance sheet on December 31, 2018.

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... 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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