Question

On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,250; What should the Accrual for Doubtful accounts be, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible

Answer 1

$5,835

Step-by-step explanation:

The computation of the amount of accrual for doubtful account is given below;

= Debit balance of account receivable × given percentage

= $97,250 × 0.06

= $5,835

hence, the amount of accrual for doubtful account is $5,835

We simply multiply both the items so that the correct amount could come