On January 1, 2016, the Accounts Receivable and the Allowance for Doubtful Accounts of Merritt Corporation carried balances of $42,500 and $720, respectively. During the year, the company reported $92,000 of credit sales. There were $750 of receivables written off as uncollectible in 2016. Cash collections of receivables amounted to $90,100. The company estimates that it will be unable to collect 1.2% of credit sales. What will be the amount of uncollectible accounts expense recognized in the 2016 income statement? Also, provide the journal entry to record this expense.

On January 1, 2016, the Accounts Receivable and the Allowance for Doubtful Accounts of Merritt Corporation carried balances of $42,500 and $720, respectively. During the year, the company reported $92,000 of credit sales. There were $750 of receivables written off as uncollectible in 2016. Cash collections of receivables amounted to $90,100. The company estimates that it will be unable to collect 1.2% of credit sales. What will be the amount of uncollectible accounts expense recognized in the 2016 income statement? Also, provide the journal entry to record this expense.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PB: Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts...

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General Accounting