Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Class Quest Company had the following balances as at January 1, 2016: Accounts Receivable $600,000 Debit Allowance for Doubtful Accounts $32,000 Credit During the fiscal

Class Quest Company had the following balances as at January 1, 2016:

Accounts Receivable $600,000 Debit

Allowance for Doubtful Accounts $32,000 Credit

During the fiscal year 2016 (Jan 1 to Dec 31 2016), the company had the following transactions:

Total Sales $7,200,000 (of which 40% represents cash sales).

Cash collected from credit customers $3,000,000

Write-offs of uncollectible accounts $22,000.

Required: If the company estimates that 2.50% of its accounts receivable balance is uncollectible, calculate the ending balance in the allowance for doubtful accounts.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Humor And Other Oxymorons

Authors: Mr Mike Jacka

1st Edition

0991280903, 978-0991280902

More Books

Students also viewed these Accounting questions