Question
company started the year with accounts receivable of $15,000 and an allowance for uncollectible accounts of ($1,500). During this year, sales (on all account) were
company started the year with accounts receivable of $15,000 and an allowance for uncollectible accounts of ($1,500). During this year, sales (on all account) were $110,000 and cash collections for sales amounted to $105,000. Also $1,000 worth of uncollectible accounts were specifically identified and written off. Then, at year end, the company estimated that 10% of ending accounts receivable would be uncollectible. a) what amount will be shown on the year-end income for bad debts expense? b) what is the balance in the allowance for uncollectible accounts after all adjustments have been made? what is the net realizable value of accounts receivable at year end?
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