Packet Exercise 6.4 1. A company's allowance for doubtful accounts is $20,000 on 1/1/2017 and...
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Packet Exercise 6.4 1. A company's allowance for doubtful accounts is $20,000 on 1/1/2017 and $14,000 on 1/1/2018. During 2017, bad debts expenses were estimated to be 4% on net credit sales of $200.000. During 2014, what was the amount of accounts receivable written off as uncollectible? (use T accounts and circle your answer) At 1/1/14 Gendry Corp. reported a balance in Accounts Receivable of $500,000 and a credit balance in the Allowance for Doubtful Accounts of $20,000. During 2014 Gendry Corp reported the following information: Credit sales $680,000 Cash sales of $110,000 3% of all credit sales historically are proven to be uncollectible Wrote off accounts considered uncollectible of $1,400 Collected $400,000 from customers (including both cash and credit sales) Recovered an additional $2,000 in accounts that had previously been written off (this amount is not included in the $400,000 collected above) What is the balance of the Accounts Receivable, Net at 12/31/14? (use Taccounts to solve)
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