The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning...

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $420,000; allowance for uncollectible accounts at the beginning of the year, $31,000 (credit balance); credit sales during the year, $1,550,000; accounts receivable written off during the year, $22,000; cash collections from customers, $1,600,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales.

1. Calculate bad debt expense for the year.

2. Calculate the year-end balance in the allowance for uncollectible accounts.

Expert Solution

Requirement 1: Bad Debt Expense = $ 1550000 Credit sales x 2%
= $ 31,000
Requirement 2: Year end balance in Allowance account
= $ 31000 beg balance – 22000 written off + 31000 bad debt expense
= $ 40,000

ekkarill92 answered 2 years ago

The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning...

The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. ( Please...

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $410,000; allowance for uncollectible accounts at the beginning of the year, $30,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $21,000; cash collections from customers, $1,400,000. Assuming the company estimates that future bad debts will equal 8% of the year-end balance in accounts receivable. 1. Calculate the year-end balance in the allowance for uncollectible accounts....

At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $160,000, and the balance...

At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $160,000, and the balance in Allowance for Doubtful Accounts was $2,700. EZ Tech's sales in 2017 were $1,200,000, 70% of which were on credit. Collections on account during the year were $770,000. The company wrote off $5,000 of uncollectible accounts during the year. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to...

What is the value of Accounts Receivable, Gross at the beginning and the ending of the...

What is the value of Accounts Receivable, Gross at the beginning and the ending of the current fiscal year? Any examples?

At the beginning of 2016, Miyazaki Company’s Accounts Receivable balance was $105,000, and the balance in...

At the beginning of 2016, Miyazaki Company’s Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950. Miyazaki’s sales in 2016 were $787,500, 80% of which were on credit. Collections on account during the year were $502,500. The company wrote off $3,000 of uncollectible accounts during the year. Required: 1. Prepare summary journal entries related to the sales, collections, and write-offs of accounts receivable during 2016. 2. Prepare journal entries to recognize bad debts assuming...

A company's accounts receivable balance at the end of December is $46,500, of which 16.50% is...

A company's accounts receivable balance at the end of December is $46,500, of which 16.50% is uncollected from December sales. The company's credit sales policy is as follows: 52.40% collected in the month of sale, 32.40% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November? $229,900 $236,286 $242,672 $249,058 $255,444

A company's accounts receivable balance at the end of December is $61,890, of which 19.20% is...

A company's accounts receivable balance at the end of December is $61,890, of which 19.20% is uncollected from December sales. The company's credit sales policy is as follows: 55.10% collected in the month of sale, 34.20% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November? Options: $432,305 $443,988 $455,672 $467,356 $479,040

A company's accounts receivable balance at the end of December is $60,180, of which 18.90% is...

A company's accounts receivable balance at the end of December is $60,180, of which 18.90% is uncollected from December sales. The company's credit sales policy is as follows: 54.80% collected in the month of sale, 34.00% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November? A) $413,979 B) $424,873 C) $435,768 D) $446,662 E) $457,556

Presented below is information that relates to Halifax Limited for 2020: Accounts Payable 49,000 Accounts Receivable...

Presented below is information that relates to Halifax Limited for 2020: Accounts Payable 49,000 Accounts Receivable 78,000 Bond Payable 600,000 Cash dividends declared on common shares 34,000 Collections of credit sales $1,100,000 Cost of goods sold 1,100,000 Equipment 85,000 Gain from transactions in foreign currencies (pre-tax) 220,000 Inventory 120,000 Loss on sale of equipment 350,000 Loss from early debt repayment 340,000 Loss resulting from calculation error on depreciation charge in 2019 460,000 Other expenses 120,000 Other revenues 180,000 Proceeds from...

11. A company's accounts receivable balance at the end of December is $68,730, of which 20.40%...

11. A company's accounts receivable balance at the end of December is $68,730, of which 20.40% is uncollected from December sales. The company's credit sales policy is as follows: 56.30% collected in the month of sale, 35.00% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November?

Question