A portion of the current assets section of the December 31, 2020, balance sheet for Carr Co.
Question:
A portion of the current assets section of the December 31, 2020, balance sheet for Carr Co. is presented here:
The company?s accounting records revealed the following information for the year ended December 31, 2020:
Sales (all on account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? ? $800,000Cash collections from customers . . . . . . . . . . . . . . . . . . . . ? ? 820,000Accounts written off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? ? 30,000Bad debts expense (accrued at 12/31/20) . . . . . . . . . . . . ? ? 24,000
Required:
Using the information provided for 2020, calculate the net realizable value of accounts receivable at December 31, 2019, and prepare the appropriate balance sheet presentation for Carr Co., as of that point in time. Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts. Remember that you are solving for the beginning balance of each account.
Balance SheetBalance 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...
Step by Step Answer:
Solution approach Net realizable value Accounts receivable Allowance for bad debtsThe balance sh...View the full answer
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
