The following information is available for Quality Book Sales\'s sales on accoun

Question

The following information is available for Quality Book Sales's sales on account and accounts receivable Accounts Receivable Balance, January 1, 2018 Allowance for Doubtful Accounts, January 1, 2018 Sales on Account, 2018 Collections of Accounts Receivable, 2018 $124,440 3,580 852,310 879,075 r several collection attempts, Quality Book Sales wrote off $2,960 of accounts that could not be collected. Quality Book Sales estimates that 1.00 percent of sales on account will be uncollectible Required a. Compute the following amounts: (1) Using the allowance method, the amount of uncollectible accounts expense for 2018. (Round your final answer to nearest whole dollar amount.) (2) Net realizable value of receivables at the end of 2018. (Round intermediate calculations final answer to nearest whole dollar amount.) Uncollectible accounts expense 2. Net realizable value

Explanation / Answer

Particulars Amt Provision to be made (852310 x 1%) (A)        8,523.10 Opening Balance        3,580.00 Less: Written Off        2,960.00 Balance in account (B)            620.00 Expense to be Book (A-B)        7,903.10 Particulars Amt Opening Balance    124,440.00 Add: Sales    852,310.00 Less: Collections    879,075.00 Less: Provison for bad debt        8,523.10 Net Realizable Value      89,151.90

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