As of December 31, 2020, Gill Co. reported accounts receivable of $218,000 and an allowance for uncollectible accounts of $8,600. During 2021, accounts receivable increased by $23,000, that change includes $7,350 of bad debts that were written off). An analysis of Gill Co's December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for 2021 would be

As of December 31, 2020, Gill Co. reported accounts receivable of $218,000 and an allowance for uncollectible accounts of $8,600. During 2021, accounts receivable increased by $23,000, that change includes $7,350 of bad debts that were written off). An analysis of Gill Co's December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for 2021 would be

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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On December 31, 2018, Ava Company had an ending balance of $8063 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $188.Ava estimates uncollectible accounts expense to be 6% of receivables. .Based on this information, the amount of uncollectible accounts expense shown on the 2018 income statement is...
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