Patrick Company had the following information in 2021: (Click the icon to view the information.) If uncollectible accounts are determined by the aging-of-receivables method to be $1,280, the uncollectible account expense for 2021 would be $480. Using the aging-of-receivables method, the balance of the Allowance account after the adjusting entry at year-end 2021 would be - X Data table OA. $800. O B. $1,280. Accounts receivable 12/31/21 13,000 OC. $520. Allowance for uncollectible-accounts credit balance 12/31/21 (before adjustment) 800 OD. $480. Credit service revenue during 2021 43,000 Cash service revenue during 2021 13,000 Collections from customers on account during 2021 42,000 Print Done

Patrick Company had the following information in 2021: (Click the icon to view the information.) If uncollectible accounts are determined by the aging-of-receivables method to be $1,280, the uncollectible account expense for 2021 would be $480. Using the aging-of-receivables method, the balance of the Allowance account after the adjusting entry at year-end 2021 would be - X Data table OA. $800. O B. $1,280. Accounts receivable 12/31/21 13,000 OC. $520. Allowance for uncollectible-accounts credit balance 12/31/21 (before adjustment) 800 OD. $480. Credit service revenue during 2021 43,000 Cash service revenue during 2021 13,000 Collections from customers on account during 2021 42,000 Print Done

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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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

Patrick Company had the following information in 2021:
E (Click the icon to view the information.)
If uncollectible accounts are determined by the aging-of-receivables method to be $1,280, the uncollectible account expense for 2021 would be $480. Using the
aging-of-receivables method, the balance of the Allowance account after the adjusting entry at year-end 2021 would be
- X
Data table
O A. $800.
B. $1,280.
Accounts receivable 12/31/21
%24
13,000
OC. $520.
OD. $480.
Allowance for uncollectible-accounts credit balance 12/31/21 (before adjustment)
800
Credit service revenue during 2021
43,000
Cash service revenue during 2021
13,000
Collections from customers on account during 2021
42,000
Print
Done

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