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Below is a portion of ABC Statement of Financial Position as of 31/12/x1: Current Assets: Cash $100,000 Accounts Receivable $60,000 Allowance for Doubtful accounts 6,000
Below is a portion of "ABC" Statement of Financial Position as of 31/12/x1:
Current Assets:
Cash $100,000
Accounts Receivable
$60,000
Allowance for Doubtful accounts 6,000
During x2 the following information was gathered from their financial records:
Total Sales Revenue $100,000
Sales Return and Allowance $2,000
Sales Discount $3,000
Accounts Receivable that were actually written off $5,000
Accounts Receivable that had been recovered $500
Accounts Receivable as on 31/12/x2 150000
Based on the above-given information, answer the following questions, assuming the company is using 10% of accounts recivable:
What is the Bad Debt Expense Balance that must be presented on the income statement for the year x2? Answer for part 1
What is the allowance for doubtful that must be presented on the statement of financial position as 31/12/x2?
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