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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
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
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