Question 34 4 p The Accounts Receivable balance for Field Company at December 31

Question

Question 34 4 p The Accounts Receivable balance for Field Company at December 31, 2015, was $25,000. During 2016, Field earned revenue of $457.000 on account and collected $326,000 of that amount. Field wrote off $5,900 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 4% of accounts receivable. 1) Assume Field has an unadjusted $2,300 credit balance in Allowance for Bad Debts at December 31, 2016. Journalize Field's December 31, 2016 adjustment to record bad debts expense using the percent-of-receivables method. HTML Editor Paragraph

Explanation / Answer

Opening Balance of AR 25000 Add: Revenue on Account During the Period 457000 Less: Amount Collected during the Month 326000 Less: Amount Writeen of as Uncollectible 5900 Closing Balance of AR 150100 Uncollectible Percentage 4% Provision for Doubtful Debts 6004 Less: Opening Balance 2300 Balance to be Debited to PL 3704 Dec 31 2016 Bad Debt Expense Account Dr. 3704 To Allowance for Doubtful Debts 3704 (Being Bad Debt Adjustment entry passed)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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