Packet Exercise 6.2 the Allowance for Doubtful Accounts of $25,000. At 12/31/2020 Boynton Corp. reported a...

 

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Packet Exercise 6.2 the Allowance for Doubtful Accounts of $25,000. At 12/31/2020 Boynton Corp. reported a balance in Accounts Receivable of $425,000 and a credit balance in The following information relates to 2021 transactions and information: Credit sales $500,000 Cash sales of $15,000 • ● Bad debt expense was estimated to be $20,000 for the year Wrote off uncollectible accounts totaling $3,000 Collected $450,000 from credit customers Calculate AR, net at 12/31/2021? (hint: use T accounts) . Accounts Receivable partered ideBad Debt Expense Allowance for D.A. Discussion questions: A. Why should Boynton report Net AR instead of Gross AR on the balance sheet? C. Did the company record enough bad debt expense in 2021? B. Was the allowance for doubtful accounts balances sufficient to absorb the write-offs recorded during 2021? D. How does bad debt expense affect net income? 000,012 E. Is bad debt a precise number or an estimate. Sales: B Cash Toby F. Are companies more likely to overestimate or underestimate bad debt expense? Explain. Packet Exercise 6.2 the Allowance for Doubtful Accounts of $25,000. At 12/31/2020 Boynton Corp. reported a balance in Accounts Receivable of $425,000 and a credit balance in The following information relates to 2021 transactions and information: Credit sales $500,000 Cash sales of $15,000 • ● Bad debt expense was estimated to be $20,000 for the year Wrote off uncollectible accounts totaling $3,000 Collected $450,000 from credit customers Calculate AR, net at 12/31/2021? (hint: use T accounts) . Accounts Receivable partered ideBad Debt Expense Allowance for D.A. Discussion questions: A. Why should Boynton report Net AR instead of Gross AR on the balance sheet? C. Did the company record enough bad debt expense in 2021? B. Was the allowance for doubtful accounts balances sufficient to absorb the write-offs recorded during 2021? D. How does bad debt expense affect net income? 000,012 E. Is bad debt a precise number or an estimate. Sales: B Cash Toby F. Are companies more likely to overestimate or underestimate bad debt expense? Explain.

Answer rating: 100% (QA)

1 Net AR According to the aforementioned ledger accounts gross AR 475000 however it cannot be shown ... View the full answer