Ask Question
26 January, 11:34

On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and $1,250, respectively. During 2016, Coolwear wrote off $775 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,600 at December 31, 2016. Bad debt expense for 2016 would be:

+1
Answers (1)
  1. 26 January, 12:03
    0
    Bad debt expense $5.125

    Explanation:

    Initial Balance

    Accounts Receivable $ 43.000

    Allowance for Uncollectible Accounts $ 1.250

    Entry

    Allowance for Uncollectible Accounts $ 775

    Accounts Receivable $ 775

    New Balance

    Accounts Receivable $ 42.225

    Allowance for Uncollectible Accounts $ 475

    Entry Adjustment

    Bad debt expense $ 5.125

    Allowance for Uncollectible Accounts $ 5.125

    END Balance

    Accounts Receivable $ 42.225

    Allowance for Uncollectible Accounts $ 5.600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and $1,250, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers