Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cloudy Corporation sells its products to customers on a credit basis. (no cash sales). Cloudy records an adjusting entry for bad debts on December 31st
Cloudy Corporation sells its products to customers on a credit basis. (no cash sales). Cloudy records an adjusting entry for bad debts on December 31st every year. (the company's fiscal year end). The January 1, 2021 balance sheet contained the following information: Current Assets: Accounts Receivable $550,0000 Allowance for uncollectible accounts (44,000) Net Accounts Receivable $506,000 During 2021, credit sales were $2,250,000, cash collections from customers were $2,175,000 and $45,000 in accounts receivable were written off as uncollectible. In addition, $28,000 was collected from a customer whose account had been written off in 2020. An aging analysis of Accounts Receivable as of December 31, 2021 estimated that $60,000 of receivables would be uncollectible. What is the balance of Accounts Receivables as of 12/31/21? (do not use $ signs, commas or decimals in your answer) 670000 What is the required balance of Allowance for Uncollectible Accounts as of 12/31/21?(do not use $ signs, commas or decimals in your answer) 60000 A What is the amount of Bad Debt Expense for 2021? (do not use $ signs, commas or decimals in your answer) 59000 A/ What is the carrying value of Accounts Receivable as of 12/31/21? (do not use $ signs, commas or decimals in your answer) 610000 A
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started