(ACCOUNTS RECEIVABLE) The following data about Zeta Company’s accounts related with credit sales are available for...

(ACCOUNTS RECEIVABLE) The following data about Zeta Company’s accounts related with credit sales are available for 2019.

“Net Sales” during 2019 (all on credit) 750,000 TL

“Accounts Receivables”, on 1.1.2019 45,000 TL

“Allowance For Uncollectible Accounts”, on 1.1.2019 10,000 TL (Credit)

Collection of accounts receivables during 2019 580,000 TL

Customer accounts written off as uncollectible during 2019 2,000 TL

*Assuming that Zeta Company provides for doubtful accounts based on %4 of the credit sales. Required:

a) Make the relating adjusting entry for Bad Debt Expense on December 31, 2019.

b) Compute the net balance (net realizable value) of Accounts Receivable on December 31, 2019.

Solutions

Expert Solution

(A) Adjusting entry for Bad Debt Expense on December 31, 2019 will be as follows;

(B) Computation of the net balance (net realizable value) of Accounts Receivable on December 31, 2019:

ekkarill92 answered 1 year ago

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