Question

Send to Gradebook < Prev © Sho. Question 2 View Policies Current Attempt in Progress Before year-end adjusting entries, Sheridan Company's account balances at December 31, 2020, for accounts receivable and the related allowance for uncollectible accounts were $1490000 and $81100, respectively. An aging of accounts receivable indicated that $129000 of the December 31 receivables are expected to be uncollectible. The accounts receivable amount expected to be collected after adjustment is $1408900 51361000 $1279900 $1442100 Attempts: 0 of 1 used Save for Later Submit Answer 251 PM 0 11/25/2019 9

Answer 1

The accounts receivable amount expected to be collected after adjustment will be $1361000.

Allowance of $81100 was created from Income statement and not from accounts receivable account. the entry to write off a bad account affects only balance sheet accounts: a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. No expense or loss is reported on the income statement because this write-off is covered under the earlier adjusting entries for estimated bad debts expense.

Hope it helps. Kindly give positive review if the answer helped in any way. :) Many thanks. Keep learning.!