You are provided with the following information about Eldon Corp.: i. Accounts receivable on December 31, 2017
Question:
i. Accounts receivable on December 31, 2017 = $287,500.
ii. Sales during the year ended December 31, 2017 = $2,262,500 (all sales are on credit).
iii. Accounts receivable written off during 2017 = $39,600.
iv. Balance in allowance for uncollectible accounts on December 31, 2016 = $38,150.
v. Historically, an average of 2 percent of credit sales has been uncollectible.
Required:
Calculate Eldon's bad debt expense for the year ended December 31, 2017 and the allowance for uncollectible accounts on December 31, 2017. Prepare the journal entry required to record the bad debt expense. 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...
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Allowance for doubtful accounts December 31 2016 38...View the full answer
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