wudha

The first two balances are at amounts as of the START of the year. The rest summarize activity during the year

Accounts Receivable, 1/1/Year4 = $300 000

Allowance for uncollectible accounts 1/1/Year5 (normal credit balance) = $25 000

Sales Revenue (all on credit) during Year4 = $4 000 000

Collections on account during Year4 = $3 800 000

Write-offs of specific accounts during Year4 = $23 000

Company uses the aging method to estimate uncollectible accounts. Company has aged the ending balance in Accounts receivable and the aging indicates uncollectible accounts of $35,000 as of the end of Year4. The balances above are before Company records the adjusting entry for bad debt expense for Year4.

a. What is the balance in the Accounts Receivable account at 12/31/Year4? (give the balance in this general ledger account (A/R) specifically- do not net A/R with a contra account).

b. After adjusting entries, how much bad debt expense will Company show on the income statement?

c. After adjusting entries, what will be the balance in "Allowance for Doubtful Accounts" ?