Allowance method fur uncollectible accounts. Diversified Technologies opened for business on January 1, 2008. Sales on account

Question:

Allowance method fur uncollectible accounts. Diversified Technologies opened for business on January 1, 2008. Sales on account during 2008 were $126,900 Collections from customers from sales on account during 2008 were $94,300. Diversified Technologies estimates that it will ultimately not collect 4% of 2008 sales on account. During 2008 the firm wrote off $2,200 of as uncollectible. The firm uses the allowance method for uncollectible accounts.
a. Compute the amount of bad debt expense for 2008.
b. computer the December 31, 2008, 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
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