Question

At the start of the current year, Minuteman Corporation had a credit balance in the Allowance for Doubtful Accounts of $1,800. During the year a monthly provision of 2% of sales was made for uncollectible accounts. Sales for the year were $600,000, and $5,600 of accounts receivable were written off as worthless. No recoveries of accounts previously written off were made during the year. What is the ending normal balance of t

Answer 1

Answer:

$8,200

Explanation:

Missing word "What is the ending normal balance of the Allowance account at year-end?"

Particulars                                            Amount

Opening balance                                 $1,800

Add: Monthly provision                       $12,000  (2%*$600,000)

Less: Bad debt                                     $5,600

Ending balance of allowance            $8,200