Reference no: EM132935303
A business has the following balances at the beginning of the year:
Accounts receivable: 197500
Allowance for doubtful accounts: -29625
The following summary transactions occurred during the year.
Sales for the year, 100% on credit: 375000
Cash collected on accounts receivable for the year: 372100
Write-offs of uncollectable accounts receivable : 23700
Received a cheque from a customer whose account was previously written off: 2370
The overall rate used to estimate the allowance for doubtful accounts at year end: 16%
Using the information above, answer the following questions. Enter the digits only - no dollar signs, commas, or decimal points. IMPORTANT - enter your answer to the second question (the balance in the allowance) as a NEGATIVE number, with a minus sign (-) in front of the digits.
Problem 1: What is the balance in the accounts receivable account at year end?
Problem 2: What is the balance in the allowance for doubtful accounts at year end?
Problem 3: What is the balance in the bad debt expense account at year end?