Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The

Question:

Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The company examined its accounts and determined that at January 1, 2019, it had balances in and Allowance for Doubtful Accounts of $478,000 and $7,900 (credit), respectively. During 2019, Ingrid extended credit for $3,075,000 of sales, collected $2,715,000 of and had customer defaults of $4,280. Ingrid performed an aging analysis on its receivables at year end and determined that $6,800 of its receivables will be uncollectible.
Required:
1. Calculate Ingrid's balance in on December 31, 2019, prior to the adjustment.
2. Calculate Ingrid's balance in allowance for doubtful accounts on December 31, 2019, prior to the adjustment.
3. Prepare the necessary adjusting entry for 2019?
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...