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Accounts receivable... Allowance for doubtful accounts. $400,000 Dr. 20.000 Cr. Exercise 8-41 Estimating and Recording Bad Debt Estimates and Write-offs; Reporting of Accou Receivable LO4
Accounts receivable... Allowance for doubtful accounts. $400,000 Dr. 20.000 Cr. Exercise 8-41 Estimating and Recording Bad Debt Estimates and Write-offs; Reporting of Accou Receivable LO4 During 2020, 545,000 of accounts receivable is considered uncollectible, and no more effort to collect these ac- counts will be made. Total sales for 2020 are $1,200,000, of which $200,000 are cash sales. A total of $900,000 was collected on account during 2020. Mister Company's December 31, 2019, balances related to accounts receivable follow Cambridge Business Publishers Required a. Assuming that Master uses the allowance method to estimate net accounts receivable and uses 9% of ac- counts receivable as its estimate of expected credit losses, prepare the (1) journal entries to record write-offs and bad debt expense for 2020, and (2) disclosure on gross and net accounts receivable on the balance sheet at December 31, 2020 b. How would the answers to part a change (if at all) assuming instead that the unadjusted balance in the all- lowance for doubtful accounts was a debit balance of $5,000
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