Refer to Exercise E5 21 In Exercise E5 21 On September 30, Google Party Planners had a $40,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts During October, Google made credit sales of $100,000 October collections on account were $94,000, and wri...

1 UncollectibleAccount Expense for October The journal entry of the uncollecti ...

Refer to Exercise E5-21. In Exercise E5-21 On September 30, Google Party Planners had a $40,000 balance

Question:

Refer to Exercise E5-21.
In Exercise E5-21
On September 30, Google Party Planners had a $40,000 balance in and a $3,000 credit balance in Allowance for Uncollectible Accounts. During October, Google made credit sales of $100,000. October collections on account were $94,000, and write-offs of uncollectible receivables totaled $1,700. Uncollectible-account expense is estimated as 2% of revenue.
Required
1. Record uncollectible-account expense for October by the direct write-off method.
2. What amount of would Google Party Planners report on its October 31 under the direct write-off method? Does Google expect to collect the full amount?
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
Balance 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...