In 2022, Johnson Supplies had net credit sales of $900,000. On January 1, 2022, Allowance for Doubtful Accounts had a credit balance of $12,500. During 2022, $23,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 8% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $180,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022? a) $14,400 b) $23,000 c) $24,900 d) $10,500

In 2022, Johnson Supplies had net credit sales of $900,000. On January 1, 2022, Allowance for Doubtful Accounts had a credit balance of $12,500. During 2022, $23,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 8% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $180,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022? a) $14,400 b) $23,000 c) $24,900 d) $10,500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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