Question

At the end of 2016, Karras Inc. had a debit balance of $141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of $4,350 and $9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of $1,530,000, collected receivables in the amount of $1,445,700, and recorded bad debt expense of $83,750.
Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.


Accounts Receivable written off $_______________

Accounts Receivable at 1/1/2016 $_______________

Answer 1

Answer:

The answer is given below

Explanation:

Allowance for doubtful accounts-opening    $4,350

Allowance for doubtful accounts-closing        ($9,420)

Bad Debt Expense                                          $83,750

Accounts Receivable Written off                $78,680

Accounts receivable-closing                       $141,120

Sales made made during the year          ($1,530,000)

Account receivables-collected                   $1,445,700

Accounts Receivable-Written off                  $78,680

Accounts Receivable opening                           $135,500