Question

3. Whispering Co. provides for doubtful accounts based on 4% of gross accounts receivable. The following data are available for 2020 Credit sales during 2020 Bad debt expense Allowance for doubtful accounts 1/1/20 Collection of accounts written off in prior years (customer credit was reestablished) Customer accounts written off as uncollectible during 2020 $4,244,100 57,800 16,450 7,250 32,230 What is the balance in Allowance for Doubtful Accounts at December 31, 2020? Allowance for doubtful accounts 12/31/20 $ 4. At the end of its first year of operations, December 31, 2020, Metlock Inc. reported the following information. Accounts receivable, net of allowance for doubtful accounts $921,900 Customer accounts written off as uncollectible during 2020 22.440 Bad debt expense for 2020 80,610 What should be the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts? Accounts receivable, before deducting allowance for doubtful accounts $

Answer 1

• Requirement 3

	Allowance account
Bal 1/1/20	$16,450
Bad Debt expense	$57,800
Written off	($32,230)
Collection of written off	$7,250
Bal on 12/31/20	$49,270	Answer

• Requirement 4

	Bad Debt Expense	$80,610
	Customer written off	($22,440)
A	Allowance account balance 31 Dec 2020	$58,170
B	Accounts receivables, net	$921,900
C = A+B	Accounts receivables before deducting Alowance account balance	$980,070	Answer