A company started the year with accounts receivable of $15,000 and an allowance of $(1,500). During the

Question:

A company started the year with of $15,000 and an allowance of $(1,500). During the year, sales (all on account) were $110,000 and cash collections for sales amounted to $105,000. Also, $1,000 worth of uncollectible accounts were specifically identified and written off. Then, at year end, the company estimated that 10% of ending would be uncollectible.
1. Record the transactions (including beginning balances) in the accounting equation.
2. What amount will be shown on the year-end income statement for bad debts expense?
3. What is the balance in the allowance account after all adjustments have been made?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...