Question

n.com low/connecthtml Ch 6 and 7 6 Help Seve Ed Sube Brief Exercise 7-14 (Algo) Uncollectible accounts, balance sheet approach (LO7-5, 7-6] The following information relates to a company's accounts receivable gross accounts receivable belance at the beginning of the year, $470,000, allowance for uncollectible accounts at the beginning of the year. $36,000 credit balance credit sales during the year, $1,800,000. accounts receivable written off during the year. $27000 cash collections from customers. $1.950,000 Assuming the company estimates that future bad debts will equal 9% of the year-end balance in accounts receivable 1. Calculate bad debt expense for the year 2. Calculate the year-end balance in the allowance for uncollectible accounts 1. Bad de expense 2. Endng balance < Prey 10 - 12 Next > 40

Answer 1

Accounts Receurable Ale To balance bld 4,70,000 By Allowance To creditsales 18,00,000 for Doubtful Ala 27000 19,50,000 By cash By Bard debatt 99,70,0001 By Balanceeld 293,000 22,70,000 Allowance To Bahan for uncollectable Alc By balance bld 36000 2637 Accounts Receivable 1 27000 By Baddebt 38637 To Balance old 11637 38637 O Bad debt expense = 2,93,000 y 9% = 26,370 Bad debt expense Alc Dr 2637 To Allowance for Doubtful account © Erding Balance = 2,931000 86370