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Sagot :
Answer:
A. $41,700
B. $32,700
Explanation:
a. Calculation to determine the year-end balance in the allowance for uncollectible accounts.
Beginning account receivable$330,000
Add Credit sale $1,100,000
Less Account receivable written off ($13,000)
Less Cash collected ($1,000,000)
Ending account receivable
$417,000
Year-end balance in the allowance for uncollectible accounts $41,700
($417,000 * 10%)
Therefore the year-end balance in the allowance for uncollectible accounts will be $41,700
b. Calculation to determine the bad debt expense for the year
Account receivable written off $13 000
Add Year-end balance in the allowance for uncollectible accounts $41,700
Less Beginning balance in the allowance for uncollectible accounts ($22,000)
Bad Debt Expense $32,700
Therefore the bad debt expense for the year will be $32,700
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