Question

The balance of the allowance for doubtful accounts account at january 1 of the current year was $6,800 credit. during the year, accounts receivable in the amount of $9,000 were written off. estimated uncollectible accounts expense for the year amounts to $7,200. the balance of the allowance for doubtful accounts account to be reported on the balance sheet at year-end is

Answer 1

The balance of the Allowance for Doubtful Accounts to be reported on the balance sheet at year-end is -$1,000.

Step-by-step explanation:

To calculate the balance of the Allowance for Doubtful Accounts on the balance sheet at year-end, we need to consider the adjustments made during the year. The balance at the beginning of the year was $6,800 credit. Accounts receivable of $9,000 were written off during the year, which reduces the balance. The estimated uncollectible accounts expense for the year, $7,200, increases the balance. So, the calculation is:

Beginning balance + Adjustment - Write-offs = Ending balance

$6,800 + $7,200 - $9,000 = -$1,000

Therefore, the balance of the Allowance for Doubtful Accounts to be reported on the balance sheet at year-end is -$1,000.

Answer 2

The balance of the Allowance for Doubtful Accounts account to be reported on the balance sheet at year-end is
Ending balance for Allowance for Doubtful Accounts = beginning balance for Allowance for Doubtful Accounts ($6,800 credit) - current year write-offs ($9,000 debit) + current year estimated Uncollectible Accounts Expense ($7,200 credit).