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NEW QUESTION: 1
An analysis of an entity's US $150,000 accounts receivable at year-end resulted in a US $5,000 ending balance for its allowance for uncollectible accounts and a bad debt expense of US $2,000. During the past year recoveries on bad debts previously written off were correctly recorded at US $500. If the beginning balance in the allowance for uncollectible accounts was US $4,700. What was the amount of accounts receivable written off as uncollectible during the year?
A. US $1,200
B. US $1,800
C. US $2,800
D. US $2,200
Answer: D
Explanation:
Under the allowance method, uncollectible accounts are written off by a debit to the allowance account and a credit to accounts receivable. The US $500 bad debts is accounted for by a debit to accounts receivable and a credit to the allowance account. The US $2,000 bad debt expense is also credited to the allowance account. The amount of accounts receivable written off as uncollectible is US $2,200 [$5,000 ending allowance $4.700 beginning allowan,.8 + $500 recoveries + $2,000 bad debt expense)].
NEW QUESTION: 2
Answer:
Explanation:
Explanation
NEW QUESTION: 3
A. Option E
B. Option B
C. Option C
D. Option D
E. Option A
F. Option F
Answer: A,B,C
Explanation:
Explanation
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