Question

valdes corporation had a credit balance in the allowance for doubtful accounts of $62,000 at 1/1/19 during 2019, it wrote off $21,400 of accounts and collected $7,800 on accounts previously written off, the amount of bad debt expense recoginzed in 2019 is $11,000. if valdes estimates at the year end that 6% accounts receivable will prove to be uncollectible what is the account receivable balance at 12/21/2019

Answer 1

The account receivable balance at 12/31/2019 is $990,000

Step-by-step explanation:

Ending balance of allowance account = Beginning allowance + Bad debt expense - Doubtful accounts written off + Amount collected on written off doubtful account

Ending balance of allowance account = $62,000 + $11,000 - $21,400 + $7,800

Ending balance of allowance account = $59,400

Accounts receivable balance at 12/31/2019 = $59,400 / 6%

=$990,000