Westbrook Enterprises had the following account balances for Year 6 and Year 5: Account 12/31/Year 6 12/31/Year 5 Accounts receivable (gross) $90,000 $75,000 Allowance for doubtful accounts $6,300 $4,200 Bad debt expense $12,500 $11,000 There were no recoveries of previously written-off accounts during Year 6. 1. What were Westbrook's write-offs during Year 6? 2. How much of the accounts receivable at the end of Year 6 does Westbrook expect to collect?
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- Bourne Company had a $150,000 beginning balance in Accounts Receivable and a $6,000 credit balance in the Allowance for Doubtful Accounts. During the year, credit sales were $ 600,000 and customers' accounts collected were $590, 000. Also, $4,000 in worthless accounts were written off. What was the net amount of receivables included in the current assets at the end of the year, before any provision was made for doubtful accounts? Select one: A. $120,000 B. $130, 000 C. $126,000 D. $154,000Determine the bad debt expense for year 2 based on the preceding facts.Provide answer this question
- Helix reported the following information in its financial statements. Write-offs of accounts receivable were $340 in the current year. Helix did not recover any write-offs. At December 31 Current Year Prior Year Accounts receivable $ 7,800 $ 5,400 Allowance for doubtful accounts 680 490 Accounts receivable, net $ 7,120 $ 4,910 Determine Bad Debts Expense for the current year.The annual report for Fabeck Finishing Corporation contained the following information: (in millions) Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net 2021 2020 $455 35 $420 $455 25 $430 Assume that accounts receivable write-offs amounted to $1 during 2021 and $9 during 2020 and that Fabeck Finishing did not record any recoveries. Required: Determine the Bad Debt Expense for 2021 based on the above facts. (Enter your answer in millions.) Bad Debt Expense millionCompany A had a debit balance in the Allowance for Doubtful Accounts of $72,000 as of 12/18/2024. Between 12/18/2024 and 12/31/2024, it wrote off $43,400 of accounts receivable and collected $11,800 on accounts previously written off. The balance in Accounts Receivable was $640,000 at 12/31/24. Company A recognizes bad debt expense in the amount of $152,200 for 2024. What percent receivables on 12/31/24 is estimated to be uncollectible by Company A? O 7.6% O 6.8% O 7.2% O 8.1%
- Helix reported the following information in its financial statements. Write-offs of accounts receivable were $340 in the current year. Helix did not recover any write-offs. At December 31 Accounts receivable Allowance for doubtful accounts Accounts receivable, net Current Year $ 7,800 680 $ 7,120 Determine Bad Debts Expense for the current year. Bad debts expense Prior Year $ 5,400 490 $ 4,910A recent report for UPS contained the following data: (in thousands) Accounts receivable Less: Allowance for bad debts Net accounts receivable Bad debt expense Current year $1,034,608 36,800 $ 997,808 $55,147 Previous year $ 805,495 38,225 S 767,270 $31,388 Required: 1. Prepare the journal entry for the amount of accounts receivable that were actually written off during the current year. 2. Prepare the journal entry to record the bad debt expense for the current year 3. What is the purpose of the account "Allowance for doubtful accounts"? Although the normal balance of this account is a credit balance, it sometimes has a debit balance. Briefly explain how this can happen.The following information is from the records of H2O Events for Year 1: Credit sales during the year $2,400,000 Accounts receivable (December 31, Year 1) 410,000 Allowance for doubtful accounts (December 31, Year 55,000 1) Bad debt expense for the year 70,000 Refer to H2O Events. What are the effects on the accounting equation when the company writes off a bad debt under the allowance method? O Assets increase and shareholders' equity decreases. O Assets decrease and shareholders' equity increases. O Assets and shareholders' equity decrease. O There is no effect on overall assets or shareholders' equity.