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 accountsreceivable.


$1.99
Sales2
Views484
Comments0
  • CreatedMarch 04, 2014
  • Files Included
Post your question
5000