Answered

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A business has the following balances at the beginning of the year:

Accounts receivable: 185000

Allowance for doubtful accounts: -27750

The following summary transactions occurred during the year.

Sales for the year, 100% on credit: 350000

Cash collected on accounts receivable for the year: 347700

Write-offs of uncollectable accounts receivable: 22200

Received a cheque from a customer whose account was previously written off: 2220

Overall rate used to estimate the allowance for doubtful accounts at year end: 16%

Using the information above, and the chart, answer the following questions. Enter the digits only - no dollar signs, commas, or decimal points. IMPORTANT - enter your answer to the second question (the balance in the allowance) as a NEGATIVE number, with a minus sign (-) in front of the digits.

What is the balance in the accounts receivable account at yeaend?
What is the balance in the allowance for doubtful accounts at year end?
What is the balance in the bad debt expense account at year end?

Sagot :

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