E. None of the above A company\'s year- end balance in accounts receivable is 55

Question

E. None of the above A company's year- end balance in accounts receivable is 5500.000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $50,000. An agin of the year indicates a required allowance of $40,000. If bad debt expense was $20,000, amount of bad debts written off during the year? 33. g of accounts receivable at the end what was the A. $10,000 B. $20,000 C. $30,000 D. $40,000 None of the above E. 34. Buzz Corporation uses the allowance method to account for its projected bad debt. At the end of 2007 Buzz estimates that $15,000 of the existing accounts receivable will not be collected (this was determined after analyzing an aging report). Buzz reported the following account activity during 2007. Accounts Receivable balance at 1/1/2007 Allowance for doubtful accounts 1/1/2007 Cash Collections Write Offs of customer accounts Credit Sales-2007 $200,000 $10,000 $895,000 $5,000 $1,000,000 Given the above information, what is the ending balance in the Accounts Receivable account? A. $290,000 B. $305,000 C. $300,000 D. $285,000 E. $310,000 300

Explanation / Answer

Q33 Answer is C. $ 30,000 Explanation: Beginning balance of Allowance for doubtful debts 50000 Add: bad debts expense 20000 Less: ending balance of Allowance for Doubtful debts -40000 Bad debts written off dueing the year 30000 Q34. Answer is D. $285,000 Explanation: Gross balance of Accounts receivable: Beginning balance 200000 Add: Ccredit sales 1,000,000 Less: Collections -895000 Less: Wwrite off -5000 Ending balance of Accounts receivable 300,000 Allowance balance ending to be kept: 15,000 Net balance of Accounts receivable at end 285,000

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