Find debt expense, ABC start in 2008 with a debit balance

Find debt expense

Assignment Help Finance Basics

Reference no: EM1351362

ABC began in 2008 with a debit balance in accounts receivable of $20,000 and a credit balance in Allowance for Doubtful accounts of $1,500. During the year, ABC sold $400,000 of produce and collected $340,000 from customers. In addition, ABC's wrote off $1,000 of accounts receivables as uncollectible.

Management uses the allowance method to account for bad debts and believes that ultimately that 8% of the year end balance in accounts receivable will not be collected.

How much bad debt expense will be recorded in 2008?

Reference no: EM1351362

Questions Cloud

Eluicidate how will impact blackspot''s bottom line : You are manager of BlackSpot Computers, which competed directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses' prospective, the two products are indistinguishable.

What are components of cost of sales : What are components of cost of sales? How is cost of sales calculated and how does cost of sales affect a food and beverage operations profitability?

Food and beverage management techniques : What regulatory agencies monitor the food and beverage industry and what effect do regulations mandated by these agencies have on a food and beverage operation's management?

Calculate the work done on object by gravitational force : When light with a wavelength of 206 nm is incident on a certain metal surface, electrons are ejected with a maximum kinetic energy of 2.57 x 10-19 J. find the wavelength (in nm) of light that should be used to double the maximum kinetic energy of ..

Find debt expense : ABC start in 2008 with a debit balance in accounts receivable of $20,000 and credit balance in Allowance for Doubtful accounts of $1,500. During the year, ABC trade $400,000 of produce and received $340,000 from customers.

Explain the company asks her coworkers : Explain the company asks her coworkers whether she must continue as an employee and ashley decides whether or not she wants to return to the job.

What loss to consumers can be decomposed into three pieces : The loss to consumers can be decomposed into three pieces: a transfer to domestic producers, a transfer to the government, and a deadweight loss. Use your diagram to identify these three pieces.

Organizational cultures effects on organizational strategy : If the organizational culture and structure is aligned to the organizational strategy the implementation of the strategy improves and by that statement, isn't strategy already implemented and working well?

Pseudocode for linear search by using clrs3e style : Write pseudocode for linear search by using CLRS3e style used in, which scans through the sequence, looking for v.

User Account

All Pages