In 2014 the Golic Co. had net credit sales of $600,000. On January 1, 2014, the Allowance for Doubtful Accounts had a credit balance of $15,000. During 2014, $24,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $160,000 what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?

Question

Fattykins

Business

5 February, 18:44

In 2014 the Golic Co. had net credit sales of $600,000. On January 1, 2014, the Allowance for Doubtful Accounts had a credit balance of $15,000. During 2014, $24,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $160,000 what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?

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Cecelia Gonzales · Answer 1

what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?

Expense doubtful 16000

Allowance Doubtful 16000

Explanation:

Credit Sales 600000

Doubtful 15000

Writte Off 24000

AR 160000

Doubtful Accounts Jan-1 15000

Uncollective account 15000 9000 24000

0

AR 160000

10%

Doubtful 16000

Expense doubtful 16000

Allowance Doubtful 16000