Excel Inc. has provided the following information relating to its sales for the past year, which endedDecember 31, 20x1.АсcountDebitCreditEstimated % of accounts receivable that will be uncollectable4%Opening Balances:Jan. 1, 20x1 balance in the allowance for doubtful account$2,000 cr|(this is before any adjusting entries)Jan. 1, 20x1 balance in the accounts receivable account$37,000 drDuring 20x1:Credit sales (20x1)$450,000$6,200Write offs of uncollectible accounts receivable (20x1)$900Collections of previously written off amounts (20x1)Cash received in payment of accounts receivable (20x1)$426,000Required –1) Calculate the balance in the Accounts Receivable account at December 31, 20x1.2) Calculate the balance in the Allowance for Doubtful Accounts at December 31, 20x1.3) Prepare any journal entries required at December 31, 20x1 to record bad debt expense for the year.

The allowance for uncollectible accounts is created to record estimated bad debt expense for the…

Excel Inc. has provided the following information relating to its sales for the past year, which ended December 31, 20x1. Account Debit Estimated % of accounts receivable that will be uncollectable 4% Opening Balances: Jan. 1, 20x1 balance in the allowance for doubtful account (this is before any adjusting entries) $2,000 cr Jan. 1, 20x1 balance in the accounts receivable account $37,000 dr During 20x1: Credit sales (20x1) Write offs of uncollectible accounts receivable (20x1) Collections of previously written off amounts (20x1) Cash received in payment of accounts receivable (20x1) $450,000 $6,200 $900 $426,000 Required - 1) Calculate the balance in the Accounts Receivable account at December 31, 20x1. 2) Calculate the balance in the Allowance for Doubtful Accounts at December 31, 20x1. 3) Prepare any journal entries required at December 31, 20x1 to record bad debt expense for the year.

Excel Inc. has provided the following information relating to its sales for the past year, which ended December 31, 20x1. Account Debit Estimated % of accounts receivable that will be uncollectable 4% Opening Balances: Jan. 1, 20x1 balance in the allowance for doubtful account (this is before any adjusting entries) $2,000 cr Jan. 1, 20x1 balance in the accounts receivable account $37,000 dr During 20x1: Credit sales (20x1) Write offs of uncollectible accounts receivable (20x1) Collections of previously written off amounts (20x1) Cash received in payment of accounts receivable (20x1) $450,000 $6,200 $900 $426,000 Required - 1) Calculate the balance in the Accounts Receivable account at December 31, 20x1. 2) Calculate the balance in the Allowance for Doubtful Accounts at December 31, 20x1. 3) Prepare any journal entries required at December 31, 20x1 to record bad debt expense for the year.

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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Vishal
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