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-   -   How to prepare a partial balance sheet (https://www.askmehelpdesk.com/showthread.php?t=773750)

  • Nov 3, 2013, 10:39 AM
    misha2006
    How to prepare a partial balance sheet
    How to prepare a partial balance sheet for a company from the following information:

    Cash-$10,000

    Account Receivable-$6000

    Bad Debts Expense-$1,400

    Merchandise Inventory-$1,800

    Allowance for Doubtful Accounts-$200
  • Nov 3, 2013, 11:46 PM
    rehmanvohra
    Ignore bad debts expense as it is an item for Income statement. For a partial balance sheet, you need to project the available information. In this case it is current assets.
  • Nov 6, 2013, 04:24 PM
    misha2006
    [QUOTE=rehmanvohra;3580072]Ignore bad debts expense as it is an item for Income statement. For a partial balance sheet, you need to project the available information. In this case it is current assets.

    Thank you
  • Nov 6, 2013, 04:27 PM
    misha2006
    Company had a balance in Accounts Receivable of $22,300. Net credit sales for the year were $515,000. The Allowance for Doubtful Accounts has a debit balance of $615. How do you journalize the recording of the bad debt expense under the balance sheet approach if $1,510 is the estimated amount of uncollectible accounts?
  • Nov 6, 2013, 09:26 PM
    rehmanvohra
    The formula is:
    Required balance 1510
    + Opening debit balance 615
    Total expense 2125

    Note:
    (a) If opening balance is credit then you deduct from required balance.
    (b) If there is any write offs, you must add to required balance

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