Question
Arbour Inc. had the following balances on its balance sheet at the beginning of year 4. The balances in the two accounts are normal (so
Arbour Inc. had the following balances on its balance sheet at the beginning of year 4. The balances in the two accounts are "normal" (so Accounts receivable is a positive asset and the allowance is a negative asset). Note that net realizable value is NOT an account balance. It is Accounts receivable net of the allowance balance.
Accounts Receivable.................................61000 Allowance for uncollectible accounts........7300 Net realizable value...................................53700
During the year, Arbour recorded the following: --Sales on account of..................... $660000 --Collections on account of............ $633600 --Write-offs of delinquent accounts.... $18700
At the end of Year4, Arbour Company recorded an adjusting entry that recognized $19800 of bad debt expense.
Enter all normal balances as positive numbers (just a number, no + sign.)
1. What would be the balance in Accounts Receivable after all of the entries above?
2. What would be the balance in the Allowance for Uncollectible Accounts after all of the entries above?
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