Question
According to last years balance sheet, a company reported Accounts Receivable of $650,000 and a credit balance in Allowance for Doubtful Accounts of $43,000. During
According to last years balance sheet, a company reported Accounts Receivable of $650,000 and a credit balance in Allowance for Doubtful Accounts of $43,000. During the current year, the company recorded $1,660,000 of service revenue on account and $1,750,000 in collections from customers. This year, the company wrote off $54,000 in accounts payable and collected $5,400 of previously written off accounts. Using the % receivables method, you estimate that 5% of outstanding receivables at year-end are uncollectible. Calculate the following and choose the correct responses.
Part A: Balance of Accounts Receivable, end of current year Answer
Part B: Unadjusted balance of Allowance for Doubtful Accounts, end of current year Answer
Part C: Estimated Uncollectible Accounts, current year Answer
Part D: Bad Debt Expense for current year Answer
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