Required information [The following information applies to the questions displayed below] Larsen Company began the current year with balances in accounts receivable and allowance for doubtful accounts of $54,700 and $4,620, respectively. The company reported credit sales of $479,750 during the year, collected $516,200, and wrote off $4,400 of uncollectible accounts. Larsen Company estimates that 10% of its accounts receivable balance will be uncollectible. Required: a. Determine the balance in the allowance for doubtful accounts as of the end of the current year. Ending alowance for doubthul accounts
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.
![Required information
The following information applies to the questions displayed below]
Larsen Company began the current year with balances in accounts receivable and allowance for doubtful accounts of
$54,700 and $4,620, respectively. The company reported credit sales of $479,750 during the year, collected $516,200,
and wrote off $4,400 of uncollectible accounts. Larsen Company estimates that 10% of its accounts receivable balance will
be uncollectible.
Required:
a. Determine the balance in the allowance for doubtful accounts as of the end of the current year.
Ending allowance for doubthul accounts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5d44dc2-bb16-4511-8534-75f68bea7418%2F82a7aa1f-3e71-44ea-8fe4-c7e4968780dc%2Fla53mwd_processed.jpeg&w=3840&q=75)
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