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A company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 6% of the re
Posted: Fri Mar 04, 2022 9:39 am
by answerhappygod
- A Company Reports The Following Amounts At 12 31 Yr2 Before Any Year End Adjustment Management Estimates 6 Of The Re 1 (313.22 KiB) Viewed 49 times
A
company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 6% of the receivables will not be collectible. The
company uses the percent- of-receivables method to determine bad debt expense. Credit sales for the year Accounts receivable (A/R) Allowance for uncollectible accounts ("AUA") $1,000,000 $ 90,000 $ 1,800 Credit Bal. Estimated percent uncollectible. 6.0% Create T accounts for A/R, AUA and Bad debt expense to help with the following Accounts Receivable AUA Bad Debt Expense 1 3 How much of the Accounts Receivable does management not expect to collect? What amount will the
company record as bad debt expense for the YR2? What amount will be shown on the 12/31 balance sheet for Net Accounts Receivable? On January 5, YR3, the
company writes off an A/R they determined is uncollectible. After the write off, what is the balance in AUA? The amount of the write-off is: $ 200 After the write off, what is the Net Accounts Receivable? 4 5