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Fill in the missing amounts in the table below. Hint: set up t-accounts for Accounts Receivable and the allowance and plug in the appropriate balances
Fill in the missing amounts in the table below. Hint: set up t-accounts for Accounts Receivable and the allowance and plug in the appropriate balances and changes. For example, Bad debt expense causes the Allowance balance to increase, while Collections from customers cause the Accounts receivable balance to decrease.
Year 0 | Year 1 | Year 2 | Year 3 | |
Credit Sales | 67,000 | 67,500 | ||
Collections from Customers | 56,300 | 60,700 | ||
Bad Debt Expense | 4,700 | 3,300 | ||
Write-offs | 3,500 | 4,100 | ||
End. Accounts Receivable | 25,000 | 32,000 | 36,000 | |
End. Allowance for DA | 5,000 | 7,000 | ||
End. Net Accounts Receivable | 20,000 | 29,400 |
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