$45,000
11Multiple Choice Question 97
Using the percentage-of-receivables basis, the uncollectible accounts
for the year is estimated to be $31,000. If the balance for the
Allowance for Doubtful Accounts is a $7,000 debit before adjustment,
what is the amount of bad debts expense for the period?
$31,000
$38,000
$7,000
$24,000
12Multiple Choice Question 103
Using the following information:
12/31/12
Accounts receivable $ 525,000
Allowance (35,000 )
Cash realizable value $ 490,000
During 2013, sales on account were $145,000 and collections on
account were $100,000. Also during 2013, the company wrote off
$8,000 in uncollectible accounts. An analysis of outstanding receivable
accounts at year end indicated that uncollectible accounts should be
estimated at $40,000.