Diversified Technologies opened for business on January 1, 2013. Sales on account during 2013 were $126,900. Collections
Question:
Diversified Technologies opened for business on January 1, 2013. Sales on account during 2013 were $126,900. Collections from customers from sales on account during 2013 were $94,300. Diversified Technologies estimates that it will ultimately not collect 4% of 2013 sales on account. During 2013 the firm wrote off $2,200 of accounts receivable as uncollectible. The firm uses the allowance method for uncollectible accounts.
a. Compute the amount of bad debt expense for 2013.
b. Compute the December 31, 2013, balance sheet carrying value of 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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For 
Financial Accounting An Introduction to Concepts, Methods and Uses
ISBN: 978-1133591023
14th edition
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
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