exercise 5-3 analyzing exercise 5-3 analyzing exercise 5-3 analyzing Exercise 5-

Question

exercise 5-3 analyzing exercise 5-3 analyzing exercise 5-3 analyzing Exercise 5-3 Analyzing account balances for a company using the allowance method of accounting for uncollectible accounts The following account balances come from the records of King Company: Beginning Balance Ending Balance Accounts Receivable Allowance for Doubtful Accounts $4,000 $4,500 250 150 During the accounting period, King recorded $21,000 of service revenue on account. The com- pany also wrote off a $180 account receivable. Required a. Determine the amount of cash collected from receivables. b. Determine the amount of uncollectible accounts expense recognized during the period.

Explanation / Answer

Account Receivable at the Beginning 4000 Add Service revenue 21000 Less wrote off 180 Less Ending Balance 4500 Cash Collected 20320 Ending Balance 250 Add writeoff 180 Less Beginning Allownace 150 Bad Debt expense 280

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