Castle company provides estimates for its uncollectible.

Assignment Help Financial Accounting

Reference no: EM13954544

Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,630 at the beginning of 2016 and a $23,110 credit balance at the end of 2016 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2016 would have included bad debt expense of $17,800 and revenue of $2,900 from the collection of previously written off bad debts.

Required:

Determine bad debt expense for 2016 according to the allowance method.

Reference no: EM13954544

Questions Cloud

The herbolt company is considering a new line of business : The Herbolt Company is considering a new line of business. Starting the business will require an initial investment in equipment of $304,000

Great northern fishing company : Great Northern Fishing Company is contemplating the purchase of a new smoker.

The prospect of receiving : Suppose you face the prospect of receiving $1,093 per year for the next 9 years plus an extra $932 payment at the end of 9 years.

Pete sampras corporation : Pete Sampras Corporation purchased for $22,500 as a trading investment bonds with a face value of $20,000. At December 31

Castle company provides estimates for its uncollectible. : Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,630 at the beginning of 2016 and a $23,110 credit balance at the end of 2016

Explain why you would or would not be favorably inclined : Explain why you would or would not be favorably inclined to make the loan.

Allowance for uncollectibles had a credit balance : Janaury 1 Allowance for Uncollectibles had a credit balance of $25,000. $18,600 of accounts were written off during the year.

Vasquez publishing company : Vasquez Publishing Company sold 1,000 two-year subscriptions to a monthly magazine. The subscriptions sold for $18 each.

Calculate agi : John and Kathy are married with two children. John has two children from a previous marriage. He paid alimony of $28,000 and child support of $19,000 to his ex-spouse. Calculate AGI

User Account

All Pages