Question
According to last years balance sheet, a company reported Accounts Receivable of $565,000 and a credit balance in Allowance for Doubtful Accounts of $44,400. During
According to last years balance sheet, a company reported Accounts Receivable of $565,000 and a credit balance in Allowance for Doubtful Accounts of $44,400. During the current year, the company recorded $1,615,000 of service revenue on account and $1,575,000 in collections from customers. This year, the company wrote off $37,500 in accounts receivable and collected $4,800 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$567,500$521,000$499,500$582,000
Part B: Unadjusted balance of Allowance for Doubtful Accounts, end of current year Answer$7,200 debit$21,300 debit$11,700 credit$3,100 credit
Part C: Estimated Uncollectible Accounts, current year Answer$28,375$24,265$29,274$26,715
Part D: Bad Debt Expense for current year
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