The following information is from the records of Chicago Photography: Accounts R

Question

The following information is from the records of Chicago Photography: Accounts Receivable, December 31, 2019 Allowance for Bad Debts, December 31, 2019 prior to adjustment Net credit sales for 2019 Accounts written off as uncollectible during 2019 $23,000 (debit) 500 (debit) 95,000 450 Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $2,850 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts. OA. $20,150 OB. $19,200 ? ?. $19.650 O D. $20,650

Explanation / Answer

1 Bad debts expense = 2850+500 = $3350 Allowance for Doubtful debts adjusted balane = $2850 Net Accounts Receivable = 23000-2850= $20150 Option A is correct 2 Allowance for bad debts balance to be reported = 15000+8300 = $23300 3 Amount of interest accrued = 50000*9%/12*1= $375

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