According to last years balance sheet, a company reported Accounts Receivable of $505,000 and a...
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Accounting
According to last years balance sheet, a company reported Accounts Receivable of $505,000 and a credit balance in Allowance for Doubtful Accounts of $34,000. During the current year, the company recorded $1,060,000 of service revenue on account and $1,055,000 in collections from customers. This year, the company wrote off $40,500 in accounts receivable and collected $5,400 of previously written off accounts. Using the % receivables method, you estimate that 5% of outstanding receivables at year-end are uncollectible. Calculate the following and choose the correct responses.
Part A: Balance of Accounts Receivable, end of current year Answer$469,500$580,500$555,000$506,000
Part B: Unadjusted balance of Allowance for Doubtful Accounts, end of current year Answer$4,400 credit$1,100 debit$7,900 credit$5,600 debit
Part C: Estimated Uncollectible Accounts, current year Answer$29,025$23,475$27,750$25,300
Part D: Bad Debt Expense for current year Answer$22,375$24,575$34,250$30,900
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