Question

A large corporation recently reported the following amounts on its year-end statements of financial position:
A footnote to these statements indicated that the company uses a percentage of its credit sales to determine its bad debts expense, that $60,000 of uncollectible accounts were written off during 2015 and $80,000 of uncollectible accounts were written off in 2016, and that there were no recoveries of accounts written off.
Required:
a. Determine the amount of bad debts expense that must have been recorded by the company for 2016.
b. How were the company’s net receivables affected by the write-off of the $80,000 of accounts in 2016?
c. How was the company’s net earnings affected by the $80,000 write-off of accounts in 2016?


$1.99
Sales0
Views48
Comments0
  • CreatedJune 11, 2015
  • Files Included
Post your question
5000