For the year ended December 31, Beal Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1 - $42000 Provision for uncollectible accounts (2% on credit sales of $2,000,000) - $40,000 Uncollectible accounts written off, 11/30- $46,000 Estimated uncollectible accounts per aging, 12/31-$ 52,000 After year-end adjustment, the uncollectible accounts expense should be? Send correct answer only
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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.
For the year ended December 31, Beal Co. estimated its allowance for uncollectible accounts using the year-end aging of
Allowance for uncollectible accounts, 1/1 - $42000
Provision for uncollectible accounts (2% on credit sales of $2,000,000) - $40,000
Uncollectible accounts written off, 11/30- $46,000
Estimated uncollectible accounts per aging, 12/31-$ 52,000
After year-end adjustment, the uncollectible accounts expense should be?
Send correct answer only
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