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Need Help Finding the Bad Debt Expense and Allowance for doubtful accounts On January 1, Hungryman Inc. has the following balances for accounts receivable and
Need Help Finding the Bad Debt Expense and Allowance for doubtful accounts
On January 1, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $233,000 Allowance for Doubtful Accounts (a credit balance) 20,970 During the year, Hungryman had $1,080,000 of credit sales, collected $615,600 of accounts receivable, and wrote off $19,300 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $25,600 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accounts receivable on December 31. 678,100 2. Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December 31. 1,670 Feedback Check My Work 1. and 2. Using T-accounts, start with the balance at the beginning of the year and make the necessary debits and/or credits for the transactions that occurred during the year. 3. Prepare the necessary adjusting entry for the year. If an amount box does not require an entry, leave it blank. Bad Debt Expense 27,270 X o Allowance for Doubtful Accounts 27,270 XStep by Step Solution
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