Question
On January 1, the company had accounts receivable of $400,000 and a non-normal balance in Allowance for Uncollectible Accounts of $12,750. During the year, the
On January 1, the company had accounts receivable of $400,000 and a non-normal balance in Allowance for Uncollectible Accounts of $12,750. During the year, the company had total credit sales of $1,000,000 and collected $950,000 of accounts receivable. Also during the year, the company wrote off $15,250 of bad debts. At year end, the company determined that the Allowance for Uncollectible Accounts should have a balance of positive $17,250.
What amount should be added to the account to achieve the correct year-end balance in the Allowance for Uncollectible Accounts?
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