Antonio Galvan, an attorney, uses the allowance method to account for uncollectible receivables. On August 31, Galvan’s accounts receivable were $8,000. During September, he earned service revenue of $20,000 on account and collected $22,000 from clients on account. He also wrote off uncollectible receivables of $2,000. What is Galvan’s balance of Accounts Receivable on September 30? Does he expect to collect this entire amount? Why or why not?
Answer to relevant QuestionsDuring its first year of operations, Atlas Travel earned revenue of $400,000 on account. Industry experience suggests that Atlas Travel’s bad debts will amount to 2% of revenues. On December 31, 2013, accounts receivable ...Gorman Enterprises sells on account. When a customer account becomes four months old, Gorman converts the account to a note receivable. During 2013, Gorman completed these transactions: Jun 29 Sold goods on account to I. ...Inland Equipment uses the allowance method to account for bad debts. On December 31, 2013, Allowance for Doubtful Accounts has a $600 credit balance. Journalize the year-end adjusting entry for bad debts assuming the ...Moto’s ledger shows the following account balances on December 31: During 2013, Moto reinstated $2,500 of previously written-off accounts receivable, and recorded $21,000 bad debt expense. Requirements 1. Calculate the ...On August 31, Pro Tennis Equipment had a $150,000 debit balance in Accounts Receivable ($70,000 current, $55,000 30 to 60 days, $35,000 60+). During September, Pro Tennis Equipment had the following transactions: ■ Sales ...
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