Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Allowance Method The Huntington Company, which has been in business for three years, makes all of its sales on account and does not offer cash

Allowance Method The Huntington Company, which has been in business for three years, makes all of its sales on account and does not offer cash discounts. The firm's credit sales, collections from customers, and write-offs of uncollectible accounts for the three-year period are summarized below:

Year Sales Collections Accounts Written Off
2012 $640,000 $574,000 $4,200
2013 810,000 760,000 6,700
2014 880,000 844,400 7,300

Required If the Huntington Company had used the allowance method of recognizing credit losses and had provided for such losses at the rate of 1.2 percent of credit sales, what amounts in Accounts Receivable and the Allowance for Doubtful Accounts would appear on the firm's balance sheet at the end of 2014? What total amount of bad debts expense would have appeared on the firm's income statement during the three year period?

Balance in Accounts Receivable at year end, 2014 ?
Allowance for Doubtful Accounts Balance at year end 2014 ?

Bad Debts Expense ?

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

The Audit Or Iceland A Modern Myth Oberon Modern Plays

Authors: Andrew Westerside And Proto Type Theater

1st Edition

1786824671, 978-1786824677

More Books

Students also viewed these Accounting questions

Question

Does everyone have the same needs? Are needs hierarchical?

Answered: 1 week ago

Question

What is an interface? What keyword is used to define one?

Answered: 1 week ago