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?

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 2 years ago

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