Question

3B) For each of the following independent situations, compute net accounts receivable. a. Accounts Receivable has a balance of $14,000. The Allowance for Uncollectible Accounts has a credit balance prior to adjustment of $300. An aging schedule prepared on December 31 reveals $1,100 of uncollectible accounts. b. Accounts Receivable has a balance of $25,700. The Allowance for Uncollectible Accounts has a debit balance prior to adjustment of $400. An aging schedule prepared on December 31 reveals $2,300 of uncollectible accounts. Answer:

Answer 1

a.

Accounts receivable = $14,000

Allowance for doubtful accounts prior to adjustment = $300 ( Credit)

Allowance for doubtful accounts after adjustment = $1,100

Net Accounts receivable = Accounts receivable - Allowance for doubtful accounts after adjustment

= 14,000-1,100

= $12,900

b.

Accounts receivable = $25,700

Allowance for doubtful accounts prior to adjustment = $400 ( Debit)

Allowance for doubtful accounts after adjustment = $2,300

Net Accounts receivable = Accounts receivable - Allowance for doubtful accounts after adjustment

= 25,700-2,300

= $23,400

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks