On the year end of January 31, 2023, Rainbow Appliances had the following account balances before adjustments for bad debt was made.

Do not enter dollar signs or commas in the input boxes.
Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts.

 Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net credit sales are uncollectible.

 What amount is expected to be uncollectible?


Provided at the beginning of the question, what is the balance in the allowance for doubtful accounts after the adjustment using the income statement approach?

Transcribed Image Text:

Net Credit Sales for the period Accounts Receivable AFDA $1,086,000 $762,000 $3,100 CR DR CR Net Credit Sales for the period Accounts Receivable AFDA $1,086,000 $762,000 $3,100 CR DR CR

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