Question

If uncollectible accounts are determined by the​ aging-of-receivables method to be $ 1 comma 200​, the​ uncollectible-account expense for 2018 would be $ 500. The balance of the Allowance account after the adjusting entry at​ year-end 2018 would be $ 1 comma 200. Using the​ aging-of-receivables method, the net realizable value of accounts receivable on the December​ 31, 2018​, balance sheet would be.

Answer 1

some information is missing, so I looked for similar questions and found the attached image:

if uncollectible accounts are determined by the​ aging-of-receivables method to be $ 1 comma 200​, the​ uncollectible-account expense for 2018 would be

• $1,200

The balance of the Allowance account after the adjusting entry at​ year-end 2018 would be

• $1,200

the adjusting journal entry should be:

Dr Bad debt expense 400

Cr Allowance for uncollectible accounts 400

Using the​ aging-of-receivables method, the net realizable value of accounts receivable on the December​ 31, 2018​, balance sheet would be

• $14,000 - $1,200 = $12,800