Ivanhoe Company provides for doubtful accounts based on 4.0% of credit sales. The following data are available for 2020:Credit sales during 2020 $3,020,000Allowance for doubtful accounts 1/1/20 37,700Collection of accounts written off in prior years (customer credit was re-established) 15,500Customer accounts written off as uncollectible during 2020 36,100What is the balance in Allowance for Doubtful Accounts at December 31, 2020?Allowance for doubtful accounts 12/31/20 $Enter your answer in accordance to the question statement

Estimated uncollectible accounts = Credit sales during 2020 x 4% = $3,020,000 x 4% = $120,800

Answered: Ivanhoe Company provides for doubtful…

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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Ivanhoe Company provides for doubtful accounts based on 4.0% of credit sales. The following data are available for 2020:

Credit sales during 2020		$3,020,000
Allowance for doubtful accounts 1/1/20		37,700
Collection of accounts written off in prior years (customer credit was re-established)		15,500
Customer accounts written off as uncollectible during 2020		36,100

What is the balance in Allowance for Doubtful Accounts at December 31, 2020?

Allowance for doubtful accounts 12/31/20

$Enter your answer in accordance to the question statement

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