Brief Exercise 7-14 (Algo) Uncollectible accounts; balance sheet approach [LO7-5, 7-6] The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $340,000; allowance for uncollectible accounts at the beginning of the year, $23,000 (credit balance); credit sales during the year, $1,150,000; accounts receivable written off during the year, $14,000; cash collections from customers, $1,050,000. Assuming the company estimates that future bad debts will equal 11% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the allowance for uncollectible accounts. 1. Bad debt expense 2. Ending balance
Brief Exercise 7-14 (Algo) Uncollectible accounts; balance sheet approach [LO7-5, 7-6] The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $340,000; allowance for uncollectible accounts at the beginning of the year, $23,000 (credit balance); credit sales during the year, $1,150,000; accounts receivable written off during the year, $14,000; cash collections from customers, $1,050,000. Assuming the company estimates that future bad debts will equal 11% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the allowance for uncollectible accounts. 1. Bad debt expense 2. Ending balance
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter16: Financial Statements And Closing Entries For A Corporation
Section: Chapter Questions
Problem 5AP
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![Brief Exercise 7-14 (Algo) Uncollectible accounts; balance sheet approach [LO7-5, 7-6]
The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning
of the year, $340,000; allowance for uncollectible accounts at the beginning of the year, $23,000 (credit balance); credit
sales during the year, $1,150,000; accounts receivable written off during the year, $14,000; cash collections from
customers, $1,050,000. Assuming the company estimates that future bad debts will equal 11% of the year-end balance in
accounts receivable.
1. Calculate bad debt expense for the year.
2. Calculate the year-end balance in the allowance for uncollectible accounts.
1. Bad debt expense
2. Ending balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F451acabb-91f9-4ee8-bbe7-7b40dcce15bc%2Fc03704bc-5514-49ca-9c81-edc34e845567%2F5k4rqd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Brief Exercise 7-14 (Algo) Uncollectible accounts; balance sheet approach [LO7-5, 7-6]
The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning
of the year, $340,000; allowance for uncollectible accounts at the beginning of the year, $23,000 (credit balance); credit
sales during the year, $1,150,000; accounts receivable written off during the year, $14,000; cash collections from
customers, $1,050,000. Assuming the company estimates that future bad debts will equal 11% of the year-end balance in
accounts receivable.
1. Calculate bad debt expense for the year.
2. Calculate the year-end balance in the allowance for uncollectible accounts.
1. Bad debt expense
2. Ending balance
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