Question: Maxim Company which uses the allowance method has accounts receivable

Maxim Company, which uses the allowance method, has accounts receivable of $130,000 and Allowance for Uncollectible Accounts of $12,800 (credit). The company sold merchandise to Olga Boruc for $14,400 and later received $4,800 from Boruc.
The rest of the amount due from Boruc had to be written off as uncollectible. Using T accounts show the beginning balances and the effects of the Boruc transactions on Accounts Receivable and Allowance for Uncollectible Accounts. What is the amount of net accounts receivable before and after the write-off?

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  • CreatedSeptember 10, 2014
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