Question
Scott Company reported the following balances after adjustment at year end. 2018 2017 Accounts Receivable 5,250,000 4,800,000 Net Realizable value 5,100,000 4,725,000 During 2018, the
Scott Company reported the following balances after adjustment at year end.
| 2018 | 2017 | |
| Accounts Receivable | 5,250,000 | 4,800,000 |
| Net Realizable value | 5,100,000 | 4,725,000 |
During 2018, the entity wrote off customer accounts totaling 160,000 and collected 40,000 on accounts written off in previous years.
What amount should be reported as doubtful accounts expense for the year ended December 31,2018? Please show solution.
a. 195,000
b. 150,000
c. 120,000
d. 150,000
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
