Question
Charlies' Corporation has provided the following information: Accounts receivable written-off as uncollectible during the year amounted to $11,500. The accounts receivable balance at the beginning
Charlies' Corporation has provided the following information:
Accounts receivable written-off as uncollectible during the year amounted to $11,500.
The accounts receivable balance at the beginning of the year was $150,000.
The accounts receivable balance at the end of the year was $210,000.
The allowance for doubtful accounts balance at the beginning of the year was $14,000.
The company uses aging of receivable method for estimating uncollectible receivables. After an aging analysis of its receivables, it estimates that out of the receivable balance of $210,000, the uncollectible receivables is $12,900.
Credit sales during the year totaled $900,000.
Required:
How much was Charlie's Corporation's bad debt expense?
How much cash was received from collections of accounts receivable?
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