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Working Backward: Allowance for Doubtful Accounts Olson Corp. reported the following in the Current Assets section of its December 31, 2016, balance sheet: 12/31/16 12/31/15
Working Backward: Allowance for Doubtful Accounts
Olson Corp. reported the following in the Current Assets section of its December 31, 2016, balance sheet:
12/31/16 | 12/31/15 | |
Accounts receivable, net of allowances | ||
of $5,170 and $2,920, respectively | $55,870 | $48,630 |
During 2016, Olson recorded $79,880 of sales on credit and wrote off $3,990 of uncollectible accounts.
Required:
1. Determine the amount of cash collected during 2016 from sales on credit. $fill in the blank 1
2. Determine the amount of bad debts expense for 2016.
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