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raymcgeisey
May 28, 2011, 10:02 PM
California Cannery began 2008 with a debit balance in accounts receivable of $150,000 and a credit balance in allowance for doubtful accounts of $7,500. During the year, California Cannery sold $1,300,000 of products and collected $1,350,000 from customers. In addition, $4000 if the accounts receivable balance wad written off as uncollectible during the year. Management uses the allowance method to account fir bad debut and believes that ultimately that 5 percent of the year end balance in accounts receivable will not be collected. How much bad debt expense will be recorded in 2008?

Just Looking
May 30, 2011, 07:57 PM
Please read this announcement.

Announcement: (https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html)

Show us what you understand so far and we can help you from there. I worked through a problem like this, but more complex, with another poster. Reading it might help you with direction on this.

https://www.askmehelpdesk.com/finance-accounting/accounts-receivable-aging-analysis-578645.html