Question
Accounts receivable beginning balance is 167,500 and ending balance is 150,350. Sales revenue is 1,550,000. Answer the following: A) Company wrote off 1,500 uncollectible accounts
Accounts receivable beginning balance is 167,500 and ending balance is 150,350. Sales revenue is 1,550,000. Answer the following:
A) Company wrote off 1,500 uncollectible accounts using the allowance method. Show the impact of the write off using both the direct and indirect methods.
B) Using the direct and indirect methods:
i) Bad debt expense is 1% of sales
ii) Bad debt expenses is 10% of accounts receivable
C) Show impact of allowance account having no balance
Show impact of debit and credit balance in allowance account. Explain if using accounts receivable net or if it should be recorded separately.
Please show journal entries and detail work. Thank you
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