Essay
On January 1,2016,Burton Company had a balance in Accounts Receivable of $90,000 and a balance in the Allowance for Doubtful Accounts account of $2,400.During 2016 Burton had credit sales of $244,000 and ended the year with a balance in Accounts Receivable of $48,000.During 2016 Burton also wrote off $1,100 of receivables.Burton uses the allowance method for uncollectible accounts and assumes that 2% of the sales on account will not be collected.
a)After adjusting entries on 12/31/16,what will be the balance in the Allowance for Doubtful Accounts?
b)By what amount did net realizable value of accounts receivable decrease in 2016 due to the write-off of the receivable?
c)What amount of cash was collected from customers during 2016?
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Using the allowance method of accounting for
Q7: A company that uses the direct write-off
Q9: The following information is taken from the
Q10: Indicate how each event affects the elements
Q11: Which of the following is not considered
Q15: Indicate whether each of the following statements
Q17: After the accounts are adjusted at the
Q29: The net realizable value of accounts receivable
Q33: If a company estimates uncollectible accounts based
Q39: The collection of an account receivable is