elijah254
May 4, 2012, 12:03 AM
At December 31, vickis designers had gross accounts receivable of $346,000. Historically vicki designers has estimated bad debt expense as 5% of gross receivables.
a. calculate bad debt expense for the year assuming that the allowance account currently has 1) a credit balance of $5,000 and 2)a debit balance of $1,200.
b. assume that on December 30, an account receivable of 2,000 was deemed uncollectible and written off. Prepare a journal entry to record this event. What effects does this have on 1) 2010 net income and 2) the net realizable value of receivables?
a. calculate bad debt expense for the year assuming that the allowance account currently has 1) a credit balance of $5,000 and 2)a debit balance of $1,200.
b. assume that on December 30, an account receivable of 2,000 was deemed uncollectible and written off. Prepare a journal entry to record this event. What effects does this have on 1) 2010 net income and 2) the net realizable value of receivables?