Answered step by step
Verified Expert Solution
Question
1 Approved Answer
he table below summarizes some balances and activities for Company. The first two balances are at amounts as of the START of the year. The
he table below summarizes some balances and activities for Company. The first two balances are at amounts as of the START of the year. The rest summarize activities during the year.
Accounts Receivable, 1/1/Year5 | $ 300,000 |
Allowance for uncollectible accounts 1/1/Year5 (normal credit balance) | $25,000 |
Sales Revenue (all on credit) during Year5 | $ 4,000,000 |
Collections on account during Year5 | $ 3,800,000 |
Write-offs of specific accounts during Year5 | $ 23,000 |
Company uses the aging method to estimate uncollectibleaccounts. Company has aged the ending balance in Accounts receivable and the aging indicatesuncollectibleaccounts of $35,000 as of the end of Year5. The balances above are just before Company records the adjusting entry for bad debt expense for Year5.
- What is the balance in the Accounts Receivable account at 12/31/Year5? (I want the balance in this account specifically- do not give me "net realizable value" for this question).
- How much bad debt expense will Company A show on the income statement?
- What will be the balance in "Allowance for Doubtful Accounts" on the 12/31/Year5 published balance sheet? (This would be the adjusted balance, of course.
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