The following information pertains to Godwin Motors, which uses the allowance method for receivables: Required a. Assuming

Question:

The following information pertains to Godwin Motors, which uses the allowance method for receivables:

Required
a. Assuming that Godwin Motors recorded bad debt expense of $25,600 in 2012, what amount of accounts receivable were written off in 2012?
b. Prepare the journal entries to record the 2012 bad debt expense and the 2012 write-offs of uncollectible accounts.
c. Assuming that Godwin made all sales on credit, what amount of cash was collected in 2012?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...