Question
2. A Companys Accounts Receivable balance at the beginning of the year before subtracting the Allowance for Doubtful Accounts was $355,000 and the Allowance for
2. A Companys Accounts Receivable balance at the beginning of the year before subtracting the Allowance for Doubtful Accounts was $355,000 and the Allowance for Doubtful accounts balance was $33,000. Credit sales for the year totaled $1,400,000. Collections on credit sales for the year were $1,360,000. A wrote off $ 45,000 of uncollectible accounts during the year but collected $10,000 of those write-offs latter in the year. A estimates bad debts to be 2.5% of credit sales. Use T-Accounts or journal entries to support your answers. Required:
1. What was As ending Accounts Receivable balance at year end before subtracting the Allowance for Doubtful Accounts.
2. What is the Bad Debt Expense for the year
3. What is the Allowance for Doubtful Accounts balance at year end.
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