At the beginning of 2017, Yummy Cupcakes, Inc. has the following book balances: Accounts Receivable $45,000 (Debit)
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Question:
At the beginning of 2017, Yummy Cupcakes, Inc. has the following book balances: Accounts Receivable $45,000 (Debit) and Allowance for Bad Debts $ 7,000 (Credit) During the year, credit sales were $840,000. Cash collected from credit sales amounted to $750.000 and $16,000 was deleted. Yummy Cupcakes uses the obsolete-minus-credits method to record bad debt expenses. Uncollectible accounts were estimated ato $30,000.
Required
calculate the ending balance in the Provision for Doubtful Payables.
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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