Question
Donovan Carrier Corp has an Accounts Receivable Balance of $1,065,000 and an Allowance for Doubtful Accounts of $99,500 as of 12/31/18. In 2019, Donovan has
Donovan Carrier Corp has an Accounts Receivable Balance of $1,065,000 and an Allowance for Doubtful Accounts of $99,500 as of 12/31/18. In 2019, Donovan has credit sales of $2,900,000 and collections on account of $3,020,000. They write-off $103,000 in uncollectible accounts in 2019. Their financial manager estimates 14% of their accounts receivable will be uncollectible as of 12/31/19.
REQUIRED : Provide the journal entry for Donovan for the account write-offs for 2019.
REQUIRED : Provide the adjusting journal entry for Donovan for the bad debt expense on December 31, 2019.
REQUIRED : Provide the Net Realizable Value of Accounts Receivable for Donovan on December 31, 2019.
REQUIRED : Provide the bad debt expense for Donovan with all of the same facts as above, but assume the financial manager uses 6% (instead of 14%) of the Accounts receivable balance for the Allowance for Uncollectible Accounts on December 31, 2019.
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