Question

4.At the end of its first year of operations, December 31, 2020, Sheridan Inc. reported the following information. Accounts receivable, net of allowance for doubtful accounts Customer accounts written off as uncollectible during 2020 $997,800 21,930 Bad debt expense for 2020 87,790 What should be the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts? Accounts receivable, before deducting allowance for doubtful accounts $ 5. The following accounts were taken from Skysong Inc's trial balance at December 31, 2020. Debit Credit $781,700 Net credit sales $12,650 330,200 Allowance for doubtful accounts Accounts receivable If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2020. $ Bad debt expense, as adjusted

Answer 1

Answers

--Answer #4

Bad debt expense	$87,790
Written off account	($21,930)
Balance in Allowance account	$65,860	[A]
Accounts receivables, net	$997,800	[B]
Account receivables, before deducting Allowance account	$1,063,660 ANSWER	[A + B]

--Answer #5

A	Adjusted balance required in Allowance account	$9,906	Credit
B	Unadjusted balance in Allowance account	$12,650	Debit
C = A+B	Bad Debt Expense, as adjusted	$22,556 Answer