Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve As of December 31, 2020 General Science Co. had an AR balance of $600,000 and a balance in the allowance for bad debt

image text in transcribedplease solve
As of December 31, 2020 General Science Co. had an AR balance of $600,000 and a balance in the allowance for bad debt of $15,000 (credit balance after all write-offs had been processed) prior to closing the books for year-end 2020 (December 31). Over the course of 2020, the Company had sales (all on credit) of $2,800,000. The Company uses the Income Statement Method for determining the allowance (and the related bad debt expense) and the amount is calculated using 1% of credit sales. Assuming the Company records the appropriate journal entry for bad debt expense/allowance as part of the 2020 year-end close, what is the net book value of the A/R at December 31, 2020? $557,000 None of the possible answers are correct $572.000 $600,000 $585.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Analysis And Decision Making

Authors: David E. Vance

1st Edition

0071406654, 9780071406659

More Books

Students also viewed these Accounting questions

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago