Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Raintree Corporation sells its products to customers on a credit basis. (no cash sales). Raintree records an adjusting entry for bad debts on December 31st

image text in transcribed
Raintree Corporation sells its products to customers on a credit basis. (no cash sales). Raintree records an adjusting entry for bad debts on December 31st every year. (the company's fiscal year end). The December 31, 2019 balance sheet. contained the following: Current Assets: Receivables $550,0000 Allowance for uncollectible accounts (44.000) Net Accounts Receivable $506,000 During 2020, credit sales were $2,750,000, cash collections from customers were $2,575,000 and $55,000 in accounts receivable were written off as uncollectible. In addition. $12,000 was collected from a customer whose account had been written off in 2019. An aging of Accounts Receivable as of December 31, 2020 estimated that $59,000 of receivables would be uncollectible. Answer the following: Clearly label and show all of your work 1. What is the balance of Accounts Receivables as of 12/31/20? 2. What is the balance of Allowance for Uncollectible Accounts as of 12/31/20? 3. What is the amount of Bad Debt Expense for 2020? 4. What is the carrying value of Accounts Receivable as of 12/31/20

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

Economics In Minutes 200 Key Concepts Explained In An Instant

Authors: Niall Kishtainy

1st Edition

1782066470, 9781782066477

More Books

Students also viewed these Accounting questions

Question

9.4 Explain the roles in career development.

Answered: 1 week ago

Question

8.6 Discusstwo techniques used for assessing training needs.

Answered: 1 week ago