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1. What is the balance in the accounts receivable account at year end? 2. What is the balance in the allowance for doubtful accounts at year end? 3. What is the balance in the bad debt expense account at year end?

1. What is the balance in the accounts receivable account at year end? 2. What is the balance in the allowance for doubtful accounts at year end? 3. What is the balance in the bad debt expense account at year end?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A business has the following balances at the beginning of the year: Accounts receivable: 200000 Allowance for doubtful accounts: -30000 The following summary transactions occurred during the year. Sales for the year, 100% on credit: 380000 Cash collected on accounts receivable for the year: 377000 Write-offs of uncollectable accounts receivable: 24000 Received a cheque from a customer whose account was previously written off: 2400 Overall rate used to estimate the allowance for doubtful accounts at year end: 16% Using the information above, answer the following questions. Enter the digits only - no dollar signs, commas, or decimal points. IMPORTANT - enter your answer to the second question (the balance in the allowance) as a NEGATIVE number, with a minus sign (-) in front of the digits. 1. What is the balance in the accounts receivable account at year end? 2. What is the balance in the allowance for doubtful accounts at year end? 3. What is the balance in the bad debt expense account at year end?
Transcribed Image Text:A business has the following balances at the beginning of the year: Accounts receivable: 200000 Allowance for doubtful accounts: -30000 The following summary transactions occurred during the year. Sales for the year, 100% on credit: 380000 Cash collected on accounts receivable for the year: 377000 Write-offs of uncollectable accounts receivable: 24000 Received a cheque from a customer whose account was previously written off: 2400 Overall rate used to estimate the allowance for doubtful accounts at year end: 16% Using the information above, answer the following questions. Enter the digits only - no dollar signs, commas, or decimal points. IMPORTANT - enter your answer to the second question (the balance in the allowance) as a NEGATIVE number, with a minus sign (-) in front of the digits. 1. What is the balance in the accounts receivable account at year end? 2. What is the balance in the allowance for doubtful accounts at year end? 3. What is the balance in the bad debt expense account at year end?
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