4 - B. At year end, Demato company has accounts receivable...

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4. Determine the bad debt expense using the percentage of accounts receivable method. Evaluate the following scenarios for Vio Company and Demato Co:. A. At year end, Vio company has accounts receivable of $14,000. The allowance for uncollectible accounts has a balance prior to adjustment of $(300). An aging schedule prepared of 12/31/09 indicates that $1,100 of Vio’s accounts receivable is uncollectible. New credit sales were $125,000 for the year. What is 1) the bad debt expense for the year? And 2) what is the balance in the allowance account at year end?
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Unformatted text preview: B. At year end, Demato company has accounts receivable for $25,700.The allowance for uncollectible accounts has of negative balance prior to adjustment of $400, which indicated that the company wrote off more bad debts than it had estimated. An aging schedule prepared on 12/31/09 indicates that $2,300 of Dematos accounts receivable is uncollectible. Net credit sales were $240,000 for the year. What is 1) the bad debt expense for the year? And 2) what is the balance in the allowance for uncollectible account at year end?...
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