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Hendricks Corporation began 2019 with a $14,000 balance in accounts receivable and a $400 balance in the allowance for doubtful accounts. The company had credit
Hendricks Corporation began 2019 with a $14,000 balance in accounts receivable and a $400 balance in the allowance for doubtful accounts. The company had credit sales (sales on account) of $46,000, collections on accounts receivable of $29,000, and wrote off uncollectible accounts of $250 during 2019. The company uses the allowance method and estimates that 4% of its outstanding accounts receivable balance will be uncollectible. 1. The balance in the accounts receivable account at the end of 2019 would be a. $30,350. b. $30,600. c. $30,750. d. $31,000. 2. Assuming no other entries were recorded to uncollectible accounts expense during 2019, the amount of the adjustment to uncollectible accounts expense appearing on the 2019 income statement would be a. $1,080. b. $1,090. C. $1,230. d. $1,240. 3. The net realizable value of receivables at the end of the year would be a. $29,510. b. $29,520. c. $29,760. d. $29,770
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