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accounting help please!?
At the beginning of May, Sweetwater Limited, which records adjusting entries at the end of each month, had an Accounts Receivable amount of $30,000 and an Allowance for Doubtful Accounts balance of $5,300. During May, the company had credit sales of $40,400 and collected $34,300 from customers. It also wrote off a certain amount of uncollectible receivables during the month and recorded a certain amount of bad debts expense at the end of the month. No accounts that were written off during the month were subsequently recovered. At the end of May, after all journal entries had been recorded and posted, the balance in Accounts Receivable was $33,400 while Allowance for Doubtful Accounts had a balance of $4,800.
what would be the amount for write off and bad debts?
2 Answers
- ?Lv 66 months ago
Adjustment to AR account = 30000+40400-34300-33400 = 2700
Using the Allowance account
Write off and bad debts = 5300-2700-4800 = 2200
- ?Lv 76 months ago
Acc rec $30,000 + $40,400 sales -34,300 collected = acc rec ending 36,100
35,100cted - 33,400 actual= 2700 difference which might have been written off
Doubtful account beginning $5,300 - Doubtful account ending 4800 = $500 difference which was written off
$500,+ 2700 = $3200 which was actually written off and bad debts.