Reference no: EM132652281
The following data are available for Husky Co. for 2020:
Credit sales during 2020 $810,000
Allowance for doubtful accounts, January 1, 2020 19,000
Collection of accounts written off in prior years 1,000
Customer accounts written off as uncollectible during 2020 18,000
Accounts receivable, December 31, 2020 70,500
Husky Co. estimates and records bad debt expense monthly based on 2% of credit sales.
Required:
Question a) Calculate the December 31, 2020 balance of the allowance for doubtful accounts in the general ledger for Husky.
Question b) A final analysis is completed of the ending accounts receivable balance and it is determined that Husky's allowance for doubtful accounts balance should be $18,000 at December 31, 2020. Prepare the adjusting journal entry.
Question c) Show how accounts receivable would be presented on the December 31, 2020 statement of financial position (titles and amounts, assuming no note disclosure).
Question d) What is 2020 total bad debts expense for Husky Co.?
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