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?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help