The December 31, year 3 unadjusted (current) balance in allowance for doubtful accounts account (balance before expense recognition) for Omega Co. is $1,920.
<h3>How is the ending balance for allowance for doubtful accounts determined?</h3>
The ending balance of allowance for doubtful accounts can be determined by recognizing the company's policy towards doubtful accounts.
Some companies use an estimate based on the accounts receivable, credit sales revenue, aging of receivables, etc.
<h3>Data and Calculations:</h3>
Allowance for Doubtful Accounts:
Beginning balance $3,000
Accounts Write-off (2,000)
Ending balance $1,920 ($48,000 x 4%)
Bad Debts Expense $920 ($3,920 - $3,000)
Accounts receivable:
Beginning balance $60,000
Revenue earned = $200,000
Cash collected (210,000
Write-off of accounts (2,000)
Ending balance $48,000
Thus, the December 31, year 3 unadjusted (current) balance in allowance for doubtful accounts account (balance before expense recognition) for Omega Co. is $1,920.
Learn more about the allowance for doubtful accounts at brainly.com/question/26498002
