Reference no: EM133157693
Question - Jameson Corp. is a wholesaler of imported products. The company had the following opening balances at January 1, 2020:
Accounts receivable $395,700
Less: Allowance for doubtful accounts $-47,484
Net realizable value $348,216
During 2020, the company had the following summary transactions:
a. Sales on account, $4,297,000; cost of goods sold, $1,934,000
b. Products returned by customers, $86,000; cost of inventory returned, $39,000
c. Cash collections on accounts receivable, $3,953,000
d. Write-offs of accounts receivable determined to be uncollectable, $59,355
e. A customer that was previously written off sent in a cheque for $5,300
f. You estimate that $71,000 of your accounts receivable will be uncollected next year.
Required - What is the amount of the entry to adjust the allowance at year-end to the desired amount?
What is the balance in bad debt expense at December 31, 2020, after all transactions?