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The Graf Company has provided the following information: Accounts receivable written-off as uncollectible during the year amounted to $11,500. The accounts receivable balance at the
The Graf Company has provided the following information: Accounts receivable written-off as uncollectible during the year amounted to $11,500. The accounts receivable balance at the beginning of the year was $150,000. The accounts receivable balance at the end of the year was $210,000. The allowance for doubtful accounts balance at the beginning of the year was $14,000. The allowance for doubtful accounts balance at the end of the year after recording the estimate of bad debt expense was $12,900. Credit sales during the year totaled $900,000. Required: (Hint: Use the t-accounts below to solve for the required amounts) a. Calculate the amount of cash that was received from collections of accounts receivable. b. Calculate the amount of bad debt expense. A/R AFDA
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