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vesna_86 [32]
2 years ago
10

Radek Company estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged cat

egories of accounts. Radek computes a total of $3,200 in estimated uncollectible accounts as of its current year-end. Its accounts receivable has a balance of $73,000, and its allowance for uncollectible accounts has an unused balance of $900 before any year-end adjustments. What amount of bad debts expense will Radek Company report in its income statement for the current year
Business
1 answer:
stepladder [879]2 years ago
7 0

Answer:

the  bad debt expense that reported in the income statement is  $2,300

Explanation:

The computation of the bad debt expense that reported in the income statement is as follows;

= Total estimated uncollectible accounts - unused balance

= $3,200 - $900

= $2,300

Hence, the  bad debt expense that reported in the income statement is  $2,300

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Answer:

Explanation:

Answer:

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Explanation:

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On the 31st 18 days would have accrued of the 45days = 18/45 x $95 = $38

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When the full interest became due we will pass an additional entry:

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Answer:

Results are below.

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