Mobile Technology Ltd. reported an unadjusted balance of accounts receivable of $1,365,000 at 31 December 20X3, along with a credit balance in the allowance for doubtful accounts of $84,700 and an allowance for sales discounts of $7,600. At year-end, the company determined that an allowance of $19,500 for sales discounts was needed. It also decided that $56,600 of accounts receivable were uncollectible and should be written off. Of the remaining receivables, it was determined that 35% were current, and of the remaining net current balance, an allowance for doubtful accounts of 3% of the net balance was needed. The remaining 60% of outstanding accounts receivable were past due and an allowance for doubtful accounts of 10% of the outstanding balance was needed.


Required:

For each case above, show how net accounts receivable would be reported on the statement of financial position, and calculate bad debt expense for the year. (Round your answers to the nearest whole dollar.)

Accounts Receivable = _________

Less: Allowance for doubtful accounts = ________

Less: allowance for sales discount = _________

Net Accounts Receivable = _____

Bad Debt Expense = ___________

Answer rating: 100% (QA)

Answer Accounts receivable 1194000 Less allowance for doubtful debt 71640 Le... View the full answer