Question: At the beginning of 2009 Runnels Art Supply had the

At the beginning of 2009, Runnels’ Art Supply had the following account balances: accounts receivable, $285,000, and allowance for uncollectible accounts, $(8,250). During the year, net credit sales were $946,750, cash collections on accounts receivable amounted to $600,000 and $5,750 of specific customer accounts were written off. At year end, Runnels’ estimated that 2.5% of net credit sales were uncollectible.
1. Record the transactions (including beginning balances) into the accounting equation for 2009.
2. What is the net realizable value of accounts receivable at year end?
3. What amount of bad debts expense will appear on the income statement for the year ended December 31, 2009?

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  • CreatedSeptember 01, 2014
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