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How would you calculate the ending balance of the Allowance for Doubtful Accounts for the aging of Accounts Receivable? Instructions Help Net Credit Sales Accounts
How would you calculate the ending balance of the Allowance for Doubtful Accounts for the aging of Accounts Receivable?
Instructions Help Net Credit Sales Accounts Receivable Aging of Receivables Aging of Receivables $490,000.00 Net Credit Sales : Balance of Accounts Receivable: Allowance for Doubtful Accounts: $60,000.00 162.00 Net Accounts Receivable: $59, 838.00 Amount of Bad Debts Expense: $4,638.00 Ending Balance, Allowance for Doubtful Accounts: Ending Balance, Net Accounts Receivable: $55,200.00 Verify Answer Next Problem Estimated Bad Debts of $4,800.00 are based on an Aging of Accounts Receivable. Help on estimating bad debts expense on the basis of an aging of Accounts Receivable. Determine through an aging of accounts receivable the amount of accounts receivable estimated to become bad debts. From this amount, deduct the unadjusted balance of the Allowance for Doubtful Accounts, if it has credit balance, or add the unadjusted balance of the Allowance for Doubtful Accounts, if it has a debit balance. Assume the amount of Accounts Receivable estimated to become bad debts through an aging of the accounts receivable is $4,300, and the credit balance of the Allowance for Doubtful Accounts is $450. The adjusting entry for bad debts expense would include a debit to Bad Debts Expense for $3.850 = $4,300 - $450) and a credit to Allowance for Doubtful Accounts of $3,850Step by Step Solution
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