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The following information relates to a Palpatine & Company's accounts receivable: gross accounts receivable balance at the beginning of the year, $320,000; allowance for uncollectible
The following information relates to a Palpatine & Company's accounts receivable: gross accounts receivable balance at the beginning of the year, $320,000; allowance for uncollectible accounts at the beginning of the year . $21,000 (credit balance): credit sales during the year, $1,050,000; accounts receivable written off during the year. $12,000 cash collections from customers, $950,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the allowance for uncollectible accounts. 1. Bad debt expense 2. Ending balance
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