Potato Company began the period with an account receivable balance of $2619 and a balance in the allowance for poubtful accounts of $300 The following transactions occurred in Potato Company a. During the period, customer balances are written off in the amount of $761 At the end of the period, bad debt expense in estimated to be $1096 b. What is the balance in Accounts Receivable after these transactions? 1858
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.
correct answer is 1858, please show work.
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