On January 1, 2019 Your Company had a $30,000 balance in the Accounts Receivable account...
90.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2019 Your Company had a $30,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $120,000 of service on account. The company collected $124,000 cash from account receivable. Bad debts are estimated to be 6% of sales on account. How much bad debts expense will be recognize on the 2019 income statement? $1,800 $7,440 $7,200 $1,560. Question 2 10 pts Your Company accepted credit card receivables in exchange for $50,000 of services provided to customers. The credit card company charges a 3% service charge. This transaction would increase expenses by $1,500. increase cash by $50,000. increase Retained Earnings by $50,000. decrease liabilities by $1,500. increase Accounts Receivable by $48,500
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
