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3 years ago

The following information relates to a company’s accounts receivable:

Business

2 answers:

Morgarella [4.7K]3 years ago

6 0

Answer:

1. the year-end balance in allowance for uncollectible accounts is $6,680.

2. The bad debt for the year is -$2,320.

Explanation:

1. To calculate the year-end balance in allowance for uncollectible accounts:

First we calculate the Account Receivable which is calculated as thus:

==> Account Receivable (ending balance) = accounts receivable (beginning balance) + Credit sales - cash collected - written off accounts receivable.

==> 300,000 + 1,500,000 - 1,450,000 - 16,000 = $334,000

Therefore the account receivable = $334,000.

Estimated percentage of bad debts = 2%

allowance of uncollectible accounts = Account Receivable x Estimated percentage.

==> $334,000 x 2% = $6,680

Hence, the year-end balance in allowance for uncollectible accounts is $6,680.

2. To calculate the bad debt expense for the year, we use:

allowance of uncollectible acountsl (ending balance) - [Allowance of uncollectible account (opening balance) - accounts receivables written off)

==> $6,680 - ($25,000 - $16,000)

= 6,680 - 9,000

= -$2,320

The bad debt for the year is -$2,320. This is incurred when customers pay for an invoice when it has been written off.

telo118 [61]3 years ago

5 0

Answer:

1. Calculate the year-end balance in the allowance for uncollectible accounts.

allowance for uncollectible accounts balance = $25,000 (beginning balance) - $16,000 (write offs) + $30,000 (credit sales $1,500,000 x 2%) = $39,000

2. Calculate bad debt expense for the year.

bad debt expense = credit sales x 2% = $1,500,000 x 2% = $30,000

Explanation:

to record write offs:

Dr Allowance for uncollectible accounts 16,000

Cr Accounts receivable 16,000

to record bad debt expense:

Dr Bad debt expense 30,000

Cr Allowance for uncollectible accounts 30,000

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Answer:

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Explanation:

Given that,

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= 0.3846 or 38.46%

Hence, the debt is as follows:

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3 years ago

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galben [10]

Answer:

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elixir [45]

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1 year ago

Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overh

aalyn [17]

Answer:

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But before that we need to calculate the following things

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Answer:

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