Founders Tech Inc. Accounts Receivable had a 2016 ending balance of $350,000 and a 2017 ending balance of $400,000. Credit sales for 2017 totaled $150,000. The company had 2016 ending balance in the allowance for doubtful accounts of $5,000. There were no write offs during 2017. After analyzing the accounts receivable account, the company determined that 8% of invoices will not be collected.

A. What is the net accounts receivable for 2016?

B. What were the accounts receivable collections in 2017?

C. Based on this analysis, record the adjusting journal entry for bad debt expense for 2017

Answer rating: 100% (QA)

Lets solve each part step by step A Net Accounts Receivable for 2016 Net Accounts Receivable for 201... View the full answer