Question
On January 1, Alonso Corp reported accounts receivable of $620,000 and Allowance for Doubtful accounts of $49,600. During 2022, Alonso had credit sales of $6,200,000
On January 1, Alonso Corp reported accounts receivable of $620,000 and Allowance for Doubtful accounts of $49,600. During 2022, Alonso had credit sales of $6,200,000 and collected $6,070,000 from customers on account. Also, on November 7, 2022Alonso determined that an account receivable for $47500 was worthless and wrote it off
Alonso estimates that 8% of accounts receivable will be uncollectible
Required:
A) Determine Alonsos uncollectible accounts (bad debts) expense for 2022
B) What is the net realizable value of Alonsos accounts receivable at December 31, 2022
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