93 94 95 96 97 C. Bad Debts Here is the information about the allowance for bad debts account for 2020: Beginning credit balance Write off bad debts $5,000 $13,000 Restoration of accounts written off $1,000 Bad debt expense, 2% of sales $ 22,000 At year end the auditor did an aging schedule that required an allowance of $25,000. ● 101 102 . 38 39 C. Bad debts 90 Allowance for bad debts 91 92 . Required: The final, adjusted bad debt expense for 2020: Provide calculations on Excel worksheet 98 99 Bad debt expense 100 Debit Debit Credit Credit
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Step by step
Solved in 3 steps
