[Mo0on]

The beginning balance in Accounts Receivable was $12,000 - Debit
The beginning balance in the Allowance for Doubtful Accounts was $1,000 - credit
During the period $8,500 new credit sales were made. There were $9,700 in cash collections on charge accounts.
An account that was previously written off was collected, the amount was $500.
The companies policy for aged receivables is:
Current portion 0%
31 to 60 10%
61 to 90 40%
Over 90 80%


When you print the month end Accounts receivable aging it shows the following partial data:
Amounts 31 to 60 61 to 90 Over 90
2,500 900 606
Question 1- show the adjusting entry to show the receipt of the previously written off account


Question 2 - What will the Bad Debt Expense be for the month?


Question 3- What will the new balance be in the allowance for Doubtful Accounts?


Question 4- What is the ending balance for Accounts Receivable?


Question 5- What will be the cash realizable value for Accounts Receivable?

[ma0641]

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