Solution-Compute the net accounts receivable at year-end

Compute the net accounts receivable at year-end

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Reference no: EM132569324

Alerin Corporation was established on January 1, 2003. During 2003, the company experienced the following:

a. Credit sales: $100,000

b. Collections on credit sales: $60,000

c. Write-offs of accounts deemed uncollectible: $4,000

d. Aging analysis of accounts deemed uncollectible at December 31, 2003, shows $8,000 of potentially uncollectible accounts.

Required:

Question a. Prepare entries for parts (a) through (d) assuming Alerin uses the allowance method (aging approach).

Question b. Compute the following at year-end:

1. Net accounts receivable

2. Bad debt expense

Reference no: EM132569324

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Compute the net accounts receivable at year-end

Reference no: EM132569324

Reference no: EM132569324

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