Reference no: EM133044223
Question - A business has the following balances at the beginning of the year:
Accounts receivable: 230000
Allowance for doubtful accounts: -14500
The following summary transactions occurred during the year.
Sales for the year, 100% on credit: 440000
Cash collected on accounts receivable for the year: 435500
Write-offs of uncollectable accounts receivable: 27600
Received a cheque from a customer whose account was previously written off: 2760
The overall rate used to estimate the allowance for doubtful accounts at year end: 18%
Required -
What is the balance in the accounts receivable account at year end?
What is the balance in the allowance for doubtful accounts at year end?
What is the balance in the bad debt expense account at year end?