Bright Smile Dental Group started 2012 with Accounts Receivable of $126,000 and a credit balance in Allowance

Question:

Bright Smile Dental Group started 2012 with Accounts Receivable of $126,000 and a credit balance in Allowance for Uncollectible Accounts balance of $12,000. The following information relates to Bright Smile Dental’s 2012 operations:

a. Credit sales, $310,000.

b. Collections on account, $318,000.

c. Write-offs of uncollectibles, $11,000.

d. At December 31, the aging of accounts receivable showed that Bright Smile will probably not collect $8,000 of its accounts receivable.

Journalize Bright Smile’s 2012 transactions based on the information provided. Prepare a T-account for the Allowance for Uncollectible Accounts to show your computation of Bad Debt Expense for the year.

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...