Kaur Company had a January 1, 2022 balance in Allowance for Doubtful Accounts of $4,000 credit. The estimated Bad Debts are 1.5 percent of net credit sales. During 2022, net credit sales were equal to $416,200. Other transactions for 2022 were as follows:

Feb. 10     A $1,000, 60-day, 12 percent note receivable was dishonoured. Collection was expected at a later date.

 Apr. 15     Aadi Gagneja's account receivable of $3,900 was deemed uncollectible.

July   1      Minh Le paid the full amount ($1,275) of his previously written-off account receivable. The receivable had been written off in 2021.

What should be the December 31, 2022 balance in the Allowance for Doubtful Accounts account after adjustment?

Answer rating: 100% (QA)

To work out the December 31 2022 equilibrium in the Recompense for Dicey Records account after chang... View the full answer