Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 6, Problem 12E
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of $141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of $4,350 and $9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of $1,530,000, collected receivables in the amount of $1,445,700, and recorded
Required:
Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
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Inferring Accounts Receivable Amounts
At the end of 2019, Karras Inc. had a debit balance of $141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts
of $4,350 and $9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of $1,530,000, collected receivables in the amount of
$1,445,700, and recorded bad debt expense of $83,750.
Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Accounts Receiyable written off
Accounts Receivable at 1/1/2019
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Inferring Accounts Receivable Amounts
At the end of 2019, Karras Inc. had a debit balance of $141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts
of $4,350 and $9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of $1,530,000, collected receivables in the amount of
$1,445,700, and recorded bad debt expense of $83,750.
Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Accounts Receivable written off
$4
Accounts Receivable at 1/1/2019
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On January 1, 2019, Smith, Inc., has the following balances for accounts receivable and allowance for doubtful accounts:
Accounts Receivable
$379,000
Allowance for Doubtful Accounts (a credit balance)
4,200
During 2019, Smith had $2,885,000 of credit sales, collected $2,905,000 of accounts receivable, and wrote off $3,850 of accounts receivable as uncollectible. At year end, Smith performs an aging of its accounts receivable balance and estimates that $3,800 will be uncollectible.
1. Calculate Smith's preadjustment balance in accounts receivable on December 31, 2019.
2. Calculate Smith's preadjustment balance in allowance for doubtful accounts on December 31, 2019.
3. Prepare the necessary adjusting entry for 2019
Chapter 6 Solutions
Intermediate Accounting: Reporting And Analysis
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