CALCULATOR Problem 8-2A (Part Level Submission) At December 31, 2016, Indigo Cor

Question

CALCULATOR Problem 8-2A (Part Level Submission) At December 31, 2016, Indigo Corporation Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts During 2017, the company had the following transactions related to receivables. $652,800 38,030 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable $2,883,800 85,386 2,592,000 44,010 14,500 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible

Explanation / Answer

Bad debt Expenses $56,374     Allowance for doubt full debt $56,374 ( to record bad debt expenses ) Notes Bad debt expenses : Allowance for doubt full debt        38,030 Add: Recovery of bad debt previously written off        14,500        52,530 Less: Write off account receivable deemed uncollectable       -44,010           8,520 Balance required        64,894 Bad debt Expenses        56,374

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