Question
Use the following information from financial statements of GTI Inc. 12/31/2009 12/31/2010 Accounts receivable, gross 75,000 60,000 Allowance for Uncollectibles 2,500 3,000 Advances from Customers
Use the following information from financial statements of GTI Inc.
12/31/2009 12/31/2010
Accounts receivable, gross 75,000 60,000
Allowance for Uncollectibles 2,500 3,000
Advances from Customers 1,000 300
Revenue (gross) earned during 2010 238,500
Bad debt expense in 2010 4,000
Q1.Compute the amount of accounts receivable written off by GTI Inc. in 2010. T-accounts with information missing are provided to help guide you.
Q2.Compute the amount of cash received from customers in 2010. GTI Inc. recognizes bad debt expense under SG&A expenses (not as a subtraction from revenue)
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Finance And Accounting For Nonfinancial Managers
Authors: Steven A. Finkler
5th Edition
9780808046905
