Question

e Review (IUPUIS 1 Help Save & Exit Submit Check my work At the beginning of the year, accounts receivable were $163,000 and the allowance for bad debts was $13,400. During the year, sales (all on account) were $619,000, cash collections were $599,000, bad debts expense totaled $19,900, and $13,900 of accounts receivable were written off as bad debts. Required: Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts. (Hint Use T- accounts to analyze each of these accounts, plug in the amounts that you know, and solve for the ending balances.) Ending balance Accounts receivable Allowance for bad debts

Answer 1

Answer:

	Ending balance
Accounts receivable	$169,100
Allowance for bad debts	$19,400

Calculations:

T-Accounts

Accounts receivable
Beginning balance	$163,000
Credit sales	$619,000	$599,000	Cash collections
		$13,900	Written off
Ending balance	$169,100
Allowance for bad debts
		$13,400	Beginning balance
Written off	$13,900	$19,900	Bad debt expense
		$19,400	Ending balance