Question
The following information is from the 2025 records of Fast Lane RacingGear: Accountsreceivable, December31, 2025 $43,000 (debit) Allowance for BadDebts, December31, 2025, prior to adjustment
The following information is from the 2025 records of Fast Lane RacingGear:
Accountsreceivable, December31, 2025 $43,000 (debit)
Allowance for BadDebts, December31, 2025, prior to adjustment 1,800 (debit)
Net credit sales for 2025 177,000
Accounts are written off as uncollectible during 2025 18,000
Cash sales during 2025 29,000
Bad debt expense is estimated by the agingofreceivables method. Management estimates that$5,000 of accounts receivable will be uncollectible. Calculate the ending balance of Allowance for BadDebts, after the adjustment for bad debtsexpense, on December31, 2025.
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
9th Edition
1119754054, 9781119754053
