Question
Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $482,000 and $1,480
Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $482,000 and $1,480 respectively, at Dec. 31, 2015. During 2016, Calistoga's credit sales and collections were $322,000 and $305,000, respectively, and $1,890 in accounts receivable were written off.
A. What is Calistogas bad debt expense?
B. What is the balance of the Allowance for Uncollectible Accounts before any adjustments for bad debt expense? Note credit or debit balance
C. What is Calistoga's adjusted allowance for uncollectible accounts at Dec. 31, 2016? Note debit or credit balance.
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