Belle972
Mar 2, 2009, 07:43 PM
Here is the question, and the answer I THINK is correct is attempted in red below. Thanks in advance for your help!
Boggs Company began the year with $2,500 in accounts receivable and $40 in allowance for doubtful accounts. At the end of the year, Boggs reported $2,650 in accounts receivable and $50 in allowance for doubtful accounts in its balance sheet. Accounts written off during the year totaled $7, and there were no recoveries of accounts written off. Credit sales totaled $17,000.
What were Bogg's cash collections from customers during the year?
a. $16,843
b. $16,850
c. $16,857
d. $17,150
e. None of the above
My answer: I believe the cash collections are $16,850, which simply represents the difference between beginning and end of year A/Rs and credit sales. Is that correct?
What was Bogg's bad debts expense for the year?
a. $3
b. $7
c. $10
d. $17
e. None of the above
On this one, I'm debating between $7 and $17. Are doubtful accounts the same as write offs? Or maybe it's $10, which already includes the $7 write off?
Boggs Company began the year with $2,500 in accounts receivable and $40 in allowance for doubtful accounts. At the end of the year, Boggs reported $2,650 in accounts receivable and $50 in allowance for doubtful accounts in its balance sheet. Accounts written off during the year totaled $7, and there were no recoveries of accounts written off. Credit sales totaled $17,000.
What were Bogg's cash collections from customers during the year?
a. $16,843
b. $16,850
c. $16,857
d. $17,150
e. None of the above
My answer: I believe the cash collections are $16,850, which simply represents the difference between beginning and end of year A/Rs and credit sales. Is that correct?
What was Bogg's bad debts expense for the year?
a. $3
b. $7
c. $10
d. $17
e. None of the above
On this one, I'm debating between $7 and $17. Are doubtful accounts the same as write offs? Or maybe it's $10, which already includes the $7 write off?