Calculate the amount of bad debt expense that will appear in the company's 2021 income statement? Oman Company reported the following racalyables in Its December 31, 2020, year-end balancesheet:Current assets:Accounts receivable, net of $57,000 in allowance foruncollectible accounts$ 389,000Interest receivable22,200Notes receivable470,000Additional information:• The notes receivable account consists of two notes, a $120,000 note, anda $350,000 note.The $120,000 note is dated October 31, 2020, with principal and interest payable on October31, 2021. The $350,000 note is dated March 31, 2020, with principal and 8% interest payableon March 31, 2021.• During 2021, sales revenue totalled $2,170,000, $2,030,000 cash was collected fromcustomers, and $46,000 in accounts receivable were written off. All sales are made on a creditbasis. Bad debt expense is recorded at year-end by adjusting the allowance account to anamount equal to 10% of year-end gross accounts receivable.

A bad debt expense is recognized when a receivable is not any longer collectible because a customer…

Oman Company reported the following racalvables in Its December 31, 2020, year- sheet: Current assets: Accounts receivable, net of $57,000 in allowance for uncollectible accounts $ 389,000 Interest receivable 22,200 INotes receivable 470,000 Additional information: The notes receivable account consists of two notes, a $120,000 note, and a $350 The $120,000 note is dated October 31, 2020, with principal and interest payable o 31, 2021. The $350,000 note is dated March 31, 2020, with principal and 8% interes on March 31, 2021. During 2021, sales revenue totalled $2,170,000, $2,030,000 cash was collected f customers, and $46,000 in accounts receivable were written off. All sales are made pense is recorded at vear-end by adiusting the allowance account Baddebt

Oman Company reported the following racalvables in Its December 31, 2020, year- sheet: Current assets: Accounts receivable, net of $57,000 in allowance for uncollectible accounts $ 389,000 Interest receivable 22,200 INotes receivable 470,000 Additional information: The notes receivable account consists of two notes, a $120,000 note, and a $350 The $120,000 note is dated October 31, 2020, with principal and interest payable o 31, 2021. The $350,000 note is dated March 31, 2020, with principal and 8% interes on March 31, 2021. During 2021, sales revenue totalled $2,170,000, $2,030,000 cash was collected f customers, and $46,000 in accounts receivable were written off. All sales are made pense is recorded at vear-end by adiusting the allowance account Baddebt

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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