At December 31, JV Co reported accounts receivable of $89,600 and an allowance for uncollectible accounts of $1,270 (credit). An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 6% of accounts receivable.
1. Estimate the amount of uncollectible receivables:
2. When recording the adjusting entry for bad debt expense how much should Allowance for Uncollectible accounts be credited?
3. On January 10, a customer’s account balance of $1,000 is written off as uncollectible. Record the write-off.
Account to be debited =
a. sales returns and allowences
b. accounts receivable
c.bad debt expense
d. allowence for uncollectible accounts
e. cash
f. accounts payable
Account to be credited =
a. sales returns and allowences
b. accounts receivable
c.bad debt expense
d. allowence for uncollectible accounts
e. cash
f. accounts payable
4. If Net Accounts receivable were $77,200 before the write-off, how much are Net Accounts receivable AFTER the write-off?