Answer:
Ending balance Accounts Receivable $153,800 Ending balance Allowance for Bad Debts $14,300
Net Accounts Receivable at end of year $139,500
Explanation:
Calculation for the balances at the end of the year for both Accounts Receivable and Allowance for Bad Debts accounts
T ACCOUNT
ACCOUNT RECEIVABLE
DEBIT SIDE
Beginning balance $146,000
Sales on account $602,000
Total $748,000
Ending balance $153,800
($748,000-$594,200)
CREDIT SIDE
Cash collections $582,000
Bad Debts written off $12,200
Total $594,200
T ACCOUNT
ALLOWANCE FOR BAD DEBT
DEBIT SIDE
Bad Debts written off $12,200
Total $12,200
CREDIT SIDE
Beginning balance $11,700
Bad debts expense $14,800
Total $26,500
Ending balance $14,300
($26,500-$12,200)
Calculation for Net Accounts Receivable at end of year:
Net Accounts Receivable at end of year = ($153,800-$14,300)
Net Accounts Receivable at end of year=$139,500
Therefore the Ending balance for Accounts Receivable is $153,800 and Allowance for Bad Debts is $14,300 while the Net Accounts Receivable at end of year is $139,500
