Uncollectible accounts expense based problem


Question: Ed Co. prepared an aging of its accounts receivable at December 31, 2004 and determined that the net realizable value of the receivables was $290,000. Additional information is available as follows:

Allowance for uncollectible accounts at 1/1/04 credit balance    $ 29,000
Accounts written off as uncollectible during 2004                        23,000
Accounts receivable at 12/31/04                                              320,000
Uncollectible accounts recovered during 2004                             5,000

For the year ended December 31, 2004, Ed's uncollectible accounts expense would be

a.    $18,000.
b.    $23,000.
c.    $11,000.
d.    $19,000.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Uncollectible accounts expense based problem
Reference No:- TGS01934754

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)