Question
Estimating Uncollectible Accounts and Reporting Receivables over Multiple Periods Weiss Company, which has been in business for three years, makes all of its sales on
Estimating Uncollectible Accounts and Reporting Receivables over Multiple Periods Weiss Company, which has been in business for three years, makes all of its sales on credit and does not offer cash discounts. Its credit sales, customer collections, and writeoffs of uncollectible accounts for its first three years follow.
Year | Sales | Collections | Accounts Written Off |
---|---|---|---|
2018 | $1,099,500 | $1,074,000 | $7,950 |
2019 | 1,285,500 | 1,263,000 | 8,700 |
2020 | 1,417,500 | 1,392,000 | 9,750 |
a. Weiss recognizes bad debts expense as 1% of sales. (Hint: This means the allowance account is increased by 1% of credit sales regardless of any writeoffs and unused balances.) What does Weisss 2020 balance sheet report for accounts receivable and the allowance for uncollectible accounts?
Current Assets | ||
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Accounts receivable | Answer
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Less allowance for uncollectible accounts | Answer
| Answer
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