Question

During the year, Bramble Corp. made an entry to write off a $31400 uncollectible account. Before this entry was made, the balance in accounts receivable was $413000 and the balance in the allowance account was $34500. The accounts receivable amount expected to be collected after the write-off entry was

Answer 1

Answer:

The accounts receivable amount expected to be collected after the write-off entry is $378,500

Explanation:

Allowance for bad debt = $34,500

Bad debt written off = $31,400

Credit balance in allowance for bad debts = Allowance for bad debt - Bad debt written off

= $34,500 - $31,400

= $3,100

The balance in receivables account = ($413,000 - $31,400) - ($34,500 - $31,400)

= $381,600 - $3,100

= $378,500