Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

rahul suresh Share Comments Help >Cc AaBbCc AaBbC AaBbCcE AaB Find Replace 9 mal No Spac... Heading 1 Heading 2 Title Dictate Sensitivity Editor Select

rahul suresh Share Comments Help >Cc AaBbCc AaBbC AaBbCcE AaB Find Replace 9 mal No Spac... Heading 1 Heading 2 Title Dictate Sensitivity Editor Select Styles Editing Voice Sensitivity Editor hop Question 6: Accounts Receivable (12 Marks) Mountain Corp. is a manufacturing company for mountain bikes. Given the current economic downturn, the Company is having increased trouble collecting its accounts receivable from retailers. The total sales for the year were $860,000. Of these sales, $800,000 were credit sales. Allowance for Doubtful Accounts is at a credit balance of 4,000. The company uses the Aging of Accounts receivable method (Balance Sheet Approach) You were provided the following additional information: Age of Accounts Receivable Current Accounts Estimated Percent Amount Uncollectible $100.000 2% 1-30 days 88,000 4% 31-60 17.000 6% 61-90 24.000 22% Over 90 days 8.000 42% Total Accounts Receivable $237.000 Required: a) Calculate the bad debt expense using the Aging of Accounts Receivable method (3 Marks) Show calculations. Bad Debt Expense at December 31, 2020 = $ Calculations: b) Calculate the ending balance of Allowance for Doubtful Accounts (2 Marks) Allowance for Doubtful Accounts at December 31, 2020- Focus 2:07 PM ENG 2020-12-19image text in transcribed

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

Step: 3

blur-text-image

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

An Introduction To Derivative Securities Financial Markets And Risk Management

Authors: Robert A. Jarrow, Arkadev Chatterjee

2nd Edition

194465965X, 978-1944659653

More Books

Students also viewed these Accounting questions