Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. The following information was taken from Aviv company balance sheet (in USD): 31.12.2018 31.12.2017 Accounts receivables, net ??? 240,000 Allowance for doubtful accounts ???

image text in transcribed

5. The following information was taken from Aviv company balance sheet (in USD): 31.12.2018 31.12.2017 Accounts receivables, net ??? 240,000 Allowance for doubtful accounts ??? 10,000 During 2018, the company had the following transactions related to its AR balance: 1. Sold inventory with a cost of $420,000 on account for $600,000. 2. Collected $450,000 of its accounts receivable. 3. Wrote-off $20,000 of its accounts receivable. Assume that the company estimates the allowance for doubtful accounts using the balance sheet method and the same percentage was applied in 2017 and 2018. What is the amount of bad debts expense recognized on 2018 income statement? a. $10,000 b. $24,000 C. $25,200 d. $15,200 e. $14,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Development Of A Methodology For Customizing Insider Threat Auditing On A Linux Operating System

Authors: William T. Bai, Air Force Institute Of Technology (U.S.)

1st Edition

1249449847, 978-1249449843

More Books

Students also viewed these Accounting questions

Question

Explain the clinical aspects of generalized anxiety disorder.

Answered: 1 week ago