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Ludmilka [50]
3 years ago
14

Black Corporation had a 1/1/17 balance in the Allowance for Doubtful Accounts of $21,000. During 2017, it wrote off $15,120 of a

ccounts and collected $4,410 on accounts previously written off. The balance in Accounts Receivable was $420,000 at 1/1 and $504,000 at 12/31. At 12/31/17, Black estimates that 5% of accounts receivable will prove to be uncollectible. What should Black report as its Allowance for Doubtful Accounts at 12/31/17
Business
1 answer:
Sedaia [141]3 years ago
3 0

Answer:

$25,200

Explanation:

Calculation to determine What should Black report as its Allowance for Doubtful Accounts at 12/31/17

Using this formula

12/31/17 Allowance for Doubtful Accounts=12/31 Accounts Receivable Balance*Estimated Uncollectibles accounts receivable percentage

Let plug in the formula

12/31/17 Allowance for Doubtful Accounts=$504,000*5%

12/31/17 Allowance for Doubtful Accounts=$25,200

Therefore What Black should report as its Allowance for Doubtful Accounts at 12/31/17 is $25,200

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EBIT goes from $30M to $33M; Depreciation goes from $10M to $12M; and interest expense goes from $6 M to $8M.1. What is the perc
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3 years ago
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Answer:

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