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Amiraneli [1.4K]
3 years ago
12

December 15: The company sold $2,000 of product to the customer with terms 2/15, n/45. December 31:The company has a fiscal year

end of December 31. The company estimates using the aging-of-Accounts Receivable. Accounts Receivable were $140,000, 3% is the estimate for doubtful accounts, and the Allowance for Doubtful Accounts balance is a $300 debit prior to any adjustment.
Business
1 answer:
n200080 [17]3 years ago
7 0

Answer:

$3,900

Explanation:

December 15: The company sold $2,000 of product to the customer with terms 2/15, n/45. December 31:The company has a fiscal year end of December 31. The company estimates using the aging-of-Accounts Receivable.

Accounts Receivable were $140,000, 3% is the estimate for doubtful accounts, and the Allowance for Doubtful Accounts balance is a $300 debit prior to any adjustment.

Therefore the amount to be credited to doubtful account = 0.03 x  140,000 = $4,200

The amount of bad debts = $4,200 - $300 = $3,900

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Answer:

The answer is stated below:

Explanation:

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