Clearwater Co. reported sales revenue of $5,400 in its income statement for the year ended December 31, 2019 The Accounts Receivable account decreased from $1,300 to $1,200 during 2019. The Allowance for Uncollectible Accounts decreased by $250 during 2019. Cash collected from customers was $5,000. Clearwater Co. uses the allowance method for recording bad debts, write-offs and year-end estimates are properly recorded Bad Debt Expense for 2019 was: a $650 O b. $150 O $50 Od $250 O $1,050

Clearwater Co. reported sales revenue of $5,400 in its income statement for the year ended December 31, 2019 The Accounts Receivable account decreased from $1,300 to $1,200 during 2019. The Allowance for Uncollectible Accounts decreased by $250 during 2019. Cash collected from customers was $5,000. Clearwater Co. uses the allowance method for recording bad debts, write-offs and year-end estimates are properly recorded Bad Debt Expense for 2019 was: a $650 O b. $150 O $50 Od $250 O $1,050

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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The statement of financial position of Spongebob Company shows accounts receivable at January 1, 2019 as follows: Accounts Receivable P450,000 Allowance for doubtful accounts 9,000 During 2019, transactions relating to the accounts receivable were as follows: • Sales on account, P4,800,000 • Cash collections of accounts receivable totaled P3,920,000, after discounts of P80,000 were allowed for prompt payment • Bad accounts previously written off in prior year amounting to P5,000 were recovered. • The company decided to provide P26,000 for doubtful accounts by a journal entry at the end of the year. • Accounts receivable of P700,000 have been pledged to a local bank on a loan of P400,000. Collections of P150,000 were made on those receivables (not included in the collection previously given) and applied as partial payment for the loan. The net realizable value of accounts receivable at December 31, 2019 was?
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