Question
Ava Company sets bad debt expense at 2 percent of its sales. Ava reported total sales of $ 65,249. Before the adjustment, Ava had $509
Ava Company sets bad debt expense at 2 percent of its sales. Ava reported total sales of $ 65,249. Before the adjustment, Ava had $509 credit balance in its allowance for doubtful accounts.
What is the ending balance in the Allowance for Doubtful Accounts that Ava report on its Balance Sheet?
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Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 4% uncollectible rate. Accounts more than 60 days are considered old and have a 39% uncollectible rate. Duncans Allowance for doubtful accounts currently has an unadjusted credit balance of $2,500.
If Duncan has $95,300 of young accounts and $10,800 of old accounts, how much should be reported in the adjusted Allowance for doubtful accounts?
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Hope Companys total assets were $19,502. Hope determined that an $1,066 account receivable was uncollectible and wrote off the receivable. After the write off, Hopes total assets will be $______
On December 31, 2018, Ava Company had an ending balance of $9,213 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $119.Ava estimates uncollectible accounts expense to be 9% of receivables. .Based on this information, the amount of uncollectible accounts expense shown on the 2018 income statement is $___________
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