collectible ovenue Accounts and Accounts Receivable on the items any analyzes it
ID: 2541619 • Letter: C
Question
collectible ovenue Accounts and Accounts Receivable on the items any analyzes its accounts receivable at December 31,2016, and arrives at the aged analy w along with the percentages that are estimated as uncollectible. r," LaFond categories belo Age Group Current (not past due) 04 IR Accounts Receivable Estimated Loss % $250,000 90,000 20,000 11,000 6,000 4,000 0.5% 31-60 days past due .. 61-120 days past due 121-180 days past due Over 180 days past Total accou .. . . 10 25 nts receivable . $381,000 At the beginning of the fourth q uarter of 2016, there was a credit balance of $4,350 in the Allowance for Uncollectible Accounts. During the fourth quarter, LaFond Company wrote off $3,830 in re ceivables as uncollectible. What amount of bad debts expense will LaFond report for 2016? What is the balance of accounts receivable that it reports on its December 31,2016, balance sheet? Set upT-accounts for both Bad Debts Expense and for the Allowance for Uncollectible Accounts. Enter any unadjusted balances along with the dollar effects of the information described (includ- a. b. c. r results from parts a and b). Explain the numbers in each of the T-accountsExplanation / Answer
a. Bad debts expense for 2016: $4180
b. Balance of accounts receivable on December 31, 2016, balance sheet: $381000 - $4700 = $376300
c.
Working:
Bad Debts Expense Debit Credit Allowance 4180 End. Bal. 4180 Allowance for Uncollectible Accounts Debit Credit Unadjusted balance 4350 Write-off 3830 4180 Bad debts expense End. Bal. 4700Related Questions
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