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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 t allowance is a negative asset). Note that net realizable value is NOT an account balance. It Accounts receivable net of the allowance balance. ............................. Accounts Receivable.. ..65500 Allowance for uncollectible accounts........6550 Net realizable value. .....58950 During the year, Arbour recorded the following: --Sales on account of..................... $820000 --Collections on account of............ $787200 --Write-offs of delinquent accounts.... $23000 At the end of Year4, Arbour Company recorded an adjusting entry that recognized $24600 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? Hint: To solve, put the beginning balances in the equation. Record each piece of additional information in a balanced transaction, then compute the ending balances for these two account
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