Question

In 2021, Coronado Company had net credit sales of $1126000. On January 1, 2021, Allowance for Doubtful Accounts had a credit balance of $26600. During 2021, $42500 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $376600, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2021

Answer 1

On January 1, 2014, allowance for doubtful accounts had a credit balance of $18,000. During 2014, $30,000 of uncollectible accounts receivable were written off.

What is accounts receivable ?

Accounts receivable, also known as AR or A/R, are legally enforceable claims for payment held by a business for goods or services supplied but not paid for by customers.

Interest receivable is interest that has been earned by investments, loans, or past-due invoices but has not yet been paid. In other words, interest receivable is a company's expected interest revenue.

Interest receivable is interest that has been earned by investments, loans, or past-due invoices but has not yet been paid. In other words, interest receivable is a company's expected interest revenue.

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