On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit sales total $210,000. As aresult of collections efforts, the aging of Accounts Receivable is as follows for April 30: Current $100,000 (1% is estimatedto be uncollectible) 0-30 Days Past Due $50,000 (5% is estimated to be uncollectible) 31-60 Days Past Due $20,000 (10% is estimated to be uncollectible) 31-90 Days Past Due $10,000 (20% is estimated to be uncollectible) > 90Days Past Due $20,000 (50% is estimated to be uncollectible) Balance in Allowance for Doubtful Accounts (prior to anyApril 30 entry) $5,000 Credit If ABC is using the % of sales method of estimating its bad debts, what is the journal entrymade at the end of the month if the estimated % of sales that are uncollectible is 4% ?

Accounts receivable is an asset account which is reported on the balance sheet of the firm. Accounts…

On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit sales total $210,000. As a result of collections efforts, the aging of Accounts Receivable is as follows for April 30: Current $100,000 (1% is estimated

On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit sales total $210,000. As a result of collections efforts, the aging of Accounts Receivable is as follows for April 30: Current $100,000 (1% is estimated

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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