At the beginning of Year 3 Omega Company had a $50,000 balance in its accounts r

Q: At the beginning of Year 3 Omega Company had a $50,000 balance in its accounts r

Solution: 2. $9,900 Calculation:- Accounts Receivable at the end of year 3 = Opening balance = $50000 Add:Account Revenue = $200000 $250000 Less: Cash collection = $150000 $100000 Less: Accounts Receivable written off = $1000 Closing Balance = $99000 Estimate of Uncollectible accounts is 10% of $99000 = $9900

ID: 2416839 • Letter: A

Question

At the beginning of Year 3 Omega Company had a $50,000 balance in its accounts receivable account and a $2,000 balance in allowance for doubtful accounts During Year 3 Omega experienced the following events (1) Omega earned $200,000 of revenue on account. (2) Collected $150,000 cash from accounts receivable. (3) Wrote-off $1,000 of accounts receivable as uncollectible. Omega estimates uncollectible accounts to be 10% of receivables, Baaed on this information, the amount of balance in the allowance for doubtful accounts at the end of year 3 after adjusting entries is

Explanation / Answer

Solution: 2. $9,900

Calculation:-

Accounts Receivable at the end of year 3 =

Opening balance = $50000

Add:Account Revenue = $200000

$250000

Less: Cash collection = $150000

$100000

Less: Accounts Receivable

written off = $1000

Closing Balance = $99000

Estimate of Uncollectible accounts is 10% of $99000 = $9900

Navigate

At the beginning of Year 2, the Redd Company had the following balances in its a

At the beginning of Year 4, Tucks Inc. issued a $810,000, 3%, 5 year, semi-annua

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

At the beginning of Year 3 Omega Company had a $50,000 balance in its accounts r

Question

Explanation / Answer

Related Questions

Navigate