Accounts receivable has a balance of $16,000 and the allowance for uncollectible accounts has a credit...

Accounts receivable has a balance of $16,000 and the allowance for uncollectible accounts has a credit balance of $1,600. What is net accounts receivable before and after a $60 account receivable is written off?

Solutions

Expert Solution

Requirement:1

Net accounts receivable Before $60 account receivable is written off = $ 14,400

Working:

Net accounts receivable before $60 account receivable is written off = Accounts Receivables before Write off - Allowance for uncollectible accounts before written off = $ 16,000 - $ 1,600 = $ 14,400

Requirement:2

Net accounts receivable After a $60 account receivable is written off =$ 14,400

Working:

Net accounts receivable after a $60 account receivable is written off = Accounts Receivables after Write off - Allowance for uncollectible accounts after written off = $ 15,940 - $ 1,540 = $ 14,400

Accounts Receivables
Beg. Balance	$ 16,000	Write off	60

End Balance	$ 15,940

Allowance for Uncollectibale Accounts
Write off	$ 60.00	Beg. Balance	$ 1,600.00

		End Balance	$ 1,540.00

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Accounts Debit Credit Cash $ 25,400 Accounts Receivable 46,800 Allowance for Uncollectible Accounts $ 4,500 Inventory...

Accounts Debit Credit Cash $ 25,400 Accounts Receivable 46,800 Allowance for Uncollectible Accounts $ 4,500 Inventory 20,300 Land 49,000 Equipment 16,500 Accumulated Depreciation 1,800 Accounts Payable 28,800 Notes Payable (6%, due April 1, 2022) 53,000 Common Stock 38,000 Retained Earnings 31,900 Totals $ 158,000 $ 158,000 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $8,600. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account,...

A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a...

A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $30,000. An aging of accounts receivable at the end of the year indicates a required allowance of $38,000. If bad debt expense for the year was $40,000 and if credit sales for the year were $8,200,000 and $7,950,000 was collected from credit customers, what was the beginning-of-year balance in accounts receivable?

The allowance for uncollectible accounts had a credit balance of $10,000 at the beginning of 2021.

Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $10,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $166,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 18,300. Required: 1. What was the balance in...

Sunland Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance...

Sunland Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $5,000. The company produced the following information from aging its accounts receivable at year end. Complete the aging schedule and calculate the total estimated uncollectible accounts. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Accounts receivable $580,000 $330,000 $120,000 $80,000 $50,000 Estimated % uncollectible 2% 6% 10% 30% Estimated uncollectible accounts $ $ $ $ $...

Accounts Debit Credit Cash 26700 Accounts Receivable 49400 Allowance for Uncollectible accounts 5800 Inventory 21600 Land...

Accounts Debit Credit Cash 26700 Accounts Receivable 49400 Allowance for Uncollectible accounts 5800 Inventory 21600 Land 62000 Equipment 23000 Accumulated Depreciation 3100 Accounts payable 30,100 Notes payable(6%,due april 1, 2019) 66,000 Common Stock 51,000 Retained Earnings 26,700 Totals 182,700 182,700 January 2. Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $163,000. January 15. Firework sales for the first half of the month total...

At the end of the year, a company has a balance in Allowance for Uncollectible Accounts...

At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $2,000 (credit) before any year-end adjustment. The balance of Accounts Receivable is $180,000. The company estimates that 5% of accounts receivable will not be collected over the next year. Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

QUESTION 39 Stargell had a credit balance of $5,360 in its allowance for uncollectible accounts at...

QUESTION 39 Stargell had a credit balance of $5,360 in its allowance for uncollectible accounts at 1/1/20. Based on past experience, 1% of gross accounts receivable have been uncollectible. During the year, Stargell wrote off $6,660 of accounts receivable. Gross accounts receivable at 12/31/20 is $188,000. What amount should reported as allowance for uncollectible accounts in the year end balance sheet? A. 580. B. $3,180. C. $7,240. D. $1,880.

Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit...

Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,780 at the beginning of 2021 and a $23,410 credit balance at the end of 2021 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2021 would have included bad debt expense of $18,100 and revenue of $3,200 from the collection of previously written off...

The December 31st, Balance Sheet shows the following: Accounts Receivable $ 100,000 less: Allowance for uncollectible...

The December 31st, Balance Sheet shows the following: Accounts Receivable $ 100,000 less: Allowance for uncollectible accounts (5,000) Net Accounts Receivable $ 95,000 During the year, the following activity occurred in the accounts receivable account: Sales on credit 650000 cash collections 635000 write-offs 2500 1) Before a year end adjustment, what is the balance in the allowance for uncollectible accounts? 2) What is the balance in gross accounts receivable at year end? 3) Using a rate of .5% of...

2. Marvin’s Magic Shop begins 2018 with Accounts Receivable Balance of $80,000.00 and Allowance for Uncollectible...

2. Marvin’s Magic Shop begins 2018 with Accounts Receivable Balance of $80,000.00 and Allowance for Uncollectible Accounts $4,000.00. During the year Sales were $500,000.00 all on account receivable. Cash Collections totaled $220,000.00. Two customers’ accounts totaling $3,000 was written off during the year. At 12/31/2018, Marvin determines that 8% of ending Accounts Receivable will not be paid due to the bad economy. Answer the following questions: Required: a. Record the all Journal Entries for the year for: i. Sales Transactions...

Subjects