for Doubtful Accounts account. The accounts receivable T-account consisted of $370,000 in debit balances and 55,100...

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for Doubtful Accounts account. The accounts receivable T-account consisted of $370,000 in debit balances and 55,100 in credit

business accounting

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Answer 1

Answer #1

a)

Bad debts expense Dr. $6,680

Allowance for doubtful accounts $6,680

(To record allowance for credit losses)

Working :- Bad debt expense = ( 303000*1% + 42000*5% + 17000*15% + 8000*40% ) - 4,200

= 10,880 - 4,200

= $6,680

b)

Current assets :-
Accounts receivable	$370,000
Less :- Allowance for doubtful accounts	($10,880)
	$359,120
Current Liabilities :-
Customers' Over payments	$5,100

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Answer 2

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for Doubtful Accounts account. The accounts receivable T-account consisted of $370,000 in debit balances and 55,100...

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for Doubtful Accounts account. The accounts receivable T-account consisted of $370,000 in debit balances and 55,100...

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