ABC Company's accountant had prepared the following schedule for its accounts receivable for its 2019 year-end: Accounts Receivable Amount Proportion expected to Category Default Not yet due $111,000 1% 1-30 days past due 45,000 3% 31-60 days past due 19,500 10% 61-90 days past due Over 90 days past due 4,500 20% 7,500 40% Before adjusting entries are entered, the pre-adjusted balance in the Allowance for Doubtful Accounts at December 31 (year-end date) showed a credit balance of $2,700. Based on the above information, the post adjustment balance in ABC's Allowance for Doubtful Accounts at December 31, 2019 should be Determine the bad debts expense for ABC for 2019 Assume that in January 2020, accounts receivable of $3,456 were written off as and an accounts receivable of $468 that was previously written off_in uncollectible December 2019, was collected. Give the necessary journal entries Debit Credit To write -off uncollectible accounts receivable To collect accounts receivable previously written off
ABC Company's accountant had prepared the following schedule for its accounts receivable for its 2019 year-end: Accounts Receivable Amount Proportion expected to Category Default Not yet due $111,000 1% 1-30 days past due 45,000 3% 31-60 days past due 19,500 10% 61-90 days past due Over 90 days past due 4,500 20% 7,500 40% Before adjusting entries are entered, the pre-adjusted balance in the Allowance for Doubtful Accounts at December 31 (year-end date) showed a credit balance of $2,700. Based on the above information, the post adjustment balance in ABC's Allowance for Doubtful Accounts at December 31, 2019 should be Determine the bad debts expense for ABC for 2019 Assume that in January 2020, accounts receivable of $3,456 were written off as and an accounts receivable of $468 that was previously written off_in uncollectible December 2019, was collected. Give the necessary journal entries Debit Credit To write -off uncollectible accounts receivable To collect accounts receivable previously written off
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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