Calculate the year-end balance in the allowance

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Question - The following information relates to Gamma Corp's accounts receivable: accounts receivable balance at the beginning of the year, $800,000; allowance for uncollectible accounts at the beginning of the year, $19,000 (credit balance); Sales during the year, $1,820,000; accounts receivable written off during the year, $49,000; cash collections from customers, $2,100,000. Assuming the company estimates bad debts at an amount equal to 8% of ending accounts receivable. Calculate the year-end balance in the allowance for uncollectible accounts.

Reference no: EM132769858

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