Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of 2022, Terrarium Co. had $1,620,000 of gross accounts receivables and $201,000 in their allowance for doubtful accounts. During 2022, Terrarium sold

image text in transcribed

At the beginning of 2022, Terrarium Co. had $1,620,000 of gross accounts receivables and $201,000 in their allowance for doubtful accounts. During 2022, Terrarium sold $4,860,000 worth of plants on account and collected $2,550,000 worth of receivables in cash. In addition, Terrarium wrote-off $63,000 worth of accounts receivables and made $3,000 of cash recoveries in 2022. Terrarium Co. uses the percentage sales method to determine bad debt expense, estimating 6% of sales to be uncollectible. What are the gross accounts receivable at the end of 2022? Your Answer: Answer At the beginning of 2022, Terrarium Co. had $1,890,000 of gross accounts receivables and $201,000 in their allowance for doubtful accounts. During 2022, Terrarium sold $4,760,000 worth of plants on account and collected $2,380,000 worth of receivables in cash. In addition, Terrarium wrote-off $56,000 worth of accounts receivables and made $3,200 of cash recoveries in 2022. Terrarium Co. uses the percentage sales method to determine bad debt expense, estimating 5% of sales to be uncollectible. What is the bad debt expense for 2022? Your

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_2

Step: 3

blur-text-image_3

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

Bank Performance, Risk And Firm Financing

Authors: P. Molyneux

1st Edition

0230313353, 9780230313354

More Books

Students also viewed these Accounting questions