At December 31, Vicki's Designers had gross accounts receivable of $346,000. Historically, Vicki's Designers has estimated bad

Question:

At December 31, Vicki's Designers had gross of $346,000. Historically, Vicki's Designers has estimated bad debt expense as 5% of gross receivables.
Required
a. Calculate bad debt expense for the year, assuming that the allowance account currently has (1) a credit balance of $5,000 and (2) a debit balance of $1,200.
b. Assume that on January 14, an account receivable of $2,000 is deemed uncollectible and written off. Prepare the journal entry to record this event. What effect does this have on (1) net income and (2) the net realizable value of receivables? 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...