Module 3.3 - Year end accounts receivable Balance X...

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[Type text] [Type text] Subtract the debts from the sales $180,000 - $150,000 $30,000 Now calculate 4% of $30,000=$1,200 Amount of year end doubtful accounts= $1,200
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Balance in accounts Balance in accounts receivable: Debit Balance: $15,000 Sales that weren’t collected: + $90,000 $105,000 3% of $105,000 is $3,150 Amount Allowance for Doubtful accounts = $3,150
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[Type text] [Type text] Beginning Balance + Sales – Collections – Write Offs $150,000 + $1,300,000 - $1,350,000 - $4,000 = $96,000 Allowance for Doubtful Accounts – Accounts Receivable Write Off $7,500 - $4,000 = $3,500
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Unformatted text preview: Year end accounts receivable Balance X Estimated Percentage of Change $96,000 * 5% = $4,800 $4,800-$3,500 = $1,300 Amount 2008 Bad Debt Expense: $1,300 Beginning Balance + Sales Collections Write Offs $20,000 + $400,000 - $340,000 - $1,000 = $79,000 Allowance for Doubtful Accounts Accounts Receivable Write Off $1,500 - $1,000 = $500 [Type text] [Type text] Year end accounts receivable Balance X Estimated Percentage of Change $79,000*8% = $6,320 $6,320 - $500 = $5820 Amount Bad Debt Expense: $5,820...
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Module 3.3 - Year end accounts receivable Balance X...

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