Dodge Company had the following information relating to its accounts receivable at December 31, 2008, and for

Question:

Dodge Company had the following information relating to its at
December 31, 2008, and for the year ended December 31, 2009:
Accounts receivable balance at 12/31/08 . . . .. . . . . . . . . . . . . . . . . . . . . $ 900,000
Allowance for bad debts at 12/31/08 (credit balance) . . . . . . . . . . . . . . 50,000
Gross sales during 2009 (all credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
Collections from customers during 2009 . . . . . . . . . . . . . . . . . . . . . . . . . 4,500,000
Accounts written off as uncollectible during 2009 .. . . . . . . . . . . . . . . . . 60,000
Estimated uncollectible receivables at 12/31/09 . . . . . . . . . . . . . . . . . . . 110,000
Dodge Company uses the percentage of receivables method to estimate bad debt expense.
1. At December 31, 2009, what is the balance of Dodge Company's Allowance for Bad Debts? What is the bad debt expense for 2009?
2. At December 31, 2009, what is the balance of Dodge Company's gross 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...