The following information relates to Bedford Companys accounts receivable: Accounts receivable balance on December 31,...
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Accounting
The following information relates to Bedford Companys accounts receivable:
Accounts receivable balance on December 31, 2023 $ 900,000
Allowance for expected credit losses balance on December 31, 2023 55,000
Credit sales made in 2024 5,800,000
Collections from customers on account in 2024 4,900,000
Accounts receivable written off in 2024 70,000
Accounts previously written off that were recovered in 2024(not included in the collections above) 6,000
After grouping its receivables by geographic region, the credit risk characteristic identified as being best for determining credit losses, and estimating the expected rate of credit losses for each group, the company estimates that the total expected credit losses at December 31, 2024, will be $80,000. The allowance account is to be adjusted accordingly. Required
Calculate the ending balance in Accounts Receivable, as at December 31, 2024. Calculate the Allowance for Expected Credit Losses balance, before adjustment, as at December 31, 2024. Calculate the credit losses for the year 2024.
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