Homework Answers
grandview uses allowance method
so allowance for doubtful account is reduced from account receivable to receive account receivable net
when account is written off amount is deducted from account receivable and allowance for doubtful account
this will result is no change in account receivable net after write off
example
account receivable $10
allowance =$2
Account receivable net = 10-2 =$8
$1 is written off as bad debt
account receivable = $9
allowance = $1
account receivable net = $8[9-1]
it remain unchanged
hence the account receivable net would be $19000
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3. (8 points) The balance
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following.1.Sales on credit for the year were $1,000,000. (all
service revenue)2.Accounts receivable of $850,000 were
collected.3.Customer accounts of $34,000 were written off during
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ending A/R balance (based on the % of A/R method). Make sure to
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