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tankabanditka [31]
3 years ago
11

Ransdell Corporation estimates that $15,000 of the current period’s credit sales will be uncollectible. Where will these bad deb

ts be reported in Ransdell’s financial statements?
Business
1 answer:
Naily [24]3 years ago
5 0

Answer:

Bad Debts Expense of $ 15,000 in the income statement and offset of receivables by $ 15,000 in the balance sheet.

Explanation:

The portion of credit sales considered to be uncollectible will be recorded as an expense in the income statement for the period. This is usually classified as bad debts expense and appears in the income statement as a debit or expense.

The corresponding credit shall be either to an Allowance for Uncollectible accounts if a provision is made or directly as a credit to the receivables account.

In either manner the effect is to reduce the receivable in the balance sheet

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m_a_m_a [10]

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<h3>What are implementation and control?</h3>
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