Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 19 During Year 2019, Wolf's Camera Shop had sales revenue of $85,000, of which $37,500 was on credit. On Jan 1, 2019, Accounts Receivable
QUESTION 19 During Year 2019, Wolf's Camera Shop had sales revenue of $85,000, of which $37,500 was on credit. On Jan 1, 2019, Accounts Receivable showed an $8,000 debit balance, and the Allowance for Doubtful Accounts showed a $450 credit balance. Collections of accounts receivable during 2019 amounted to $30,000. Data during the 2019 was as follows: 1. On December 31, 2019 an Account Receivable (Mr. Bill Burton) of $850 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt. 2. On December 31, 2019 based on experience, a decision was made to continue the accounting policy of basing estimated bad debt losses on 1.5 percent of credit sales for the year. The Closing balance of Accounts receivable on Dec 31, 2019 was: o A. 14,650 OB. 13,637.5 o C. 7,500 OD. 62,150
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started