At the beginning of 20X3, W7w Tax Prep Company reported Accounts Receivable $11500 and Allowance for Uncollectible Accounts $1000 (debit). During 20X3, before recording the year-end adjusting entries, the Company recorded credit service revenue $27000 and wrote off accounts receivable $200. The following balance was reported on December 31, 20X3, before any adjustment Accounts Receivable $23000. The Company estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group Not yet due 0-30 days past due Amount Receivable Estimated Percent Uncollectible 18,000 10% 3,000 30% More than 30 days past due Total 2,000 60% 23,000 Required: Please choose the best answer to the following questions based on the above information. On December 31, 20X3, what is the amount of accounts receivable that the Company expects to collect from customers? O $19100 $21800 O $10500 O $23000 What is the amount of bad debt expense that the Company recorded in its December 31, 20X3, adjustment to the allowance account? $2900 $3700 $3900 Ⓒ $5100 How much cash did the Company collect on Accounts Receivable in 20X3? O $15500 $26800 O $15300
At the beginning of 20X3, W7w Tax Prep Company reported Accounts Receivable $11500 and Allowance for Uncollectible Accounts $1000 (debit). During 20X3, before recording the year-end adjusting entries, the Company recorded credit service revenue $27000 and wrote off accounts receivable $200. The following balance was reported on December 31, 20X3, before any adjustment Accounts Receivable $23000. The Company estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group Not yet due 0-30 days past due Amount Receivable Estimated Percent Uncollectible 18,000 10% 3,000 30% More than 30 days past due Total 2,000 60% 23,000 Required: Please choose the best answer to the following questions based on the above information. On December 31, 20X3, what is the amount of accounts receivable that the Company expects to collect from customers? O $19100 $21800 O $10500 O $23000 What is the amount of bad debt expense that the Company recorded in its December 31, 20X3, adjustment to the allowance account? $2900 $3700 $3900 Ⓒ $5100 How much cash did the Company collect on Accounts Receivable in 20X3? O $15500 $26800 O $15300
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter9: Receivables
Section: Chapter Questions
Problem 17E: Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of...
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:At the beginning of 20X3, W7w Tax Prep Company reported Accounts Receivable $11500 and Allowance for Uncollectible Accounts
$1000 (debit). During 20X3, before recording the year-end adjusting entries, the Company recorded credit service revenue $27000
and wrote off accounts receivable $200. The following balance was reported on December 31, 20X3, before any adjustment Accounts
Receivable $23000. The Company estimates uncollectible accounts based on an aging of accounts receivable as shown below.
Age Group
Not yet due
0-30 days past due
Amount
Receivable
Estimated Percent
Uncollectible
18,000 10%
3,000 30%
More than 30 days past
due
Total
2,000 60%
23,000
Required: Please choose the best answer to the following questions based on the above information.
On December 31, 20X3, what is the amount of accounts receivable that the Company expects to collect from customers?
O $19100
$21800
O $10500
O $23000
What is the amount of bad debt expense that the Company recorded in its December 31, 20X3, adjustment to the allowance account?
$2900
$3700
$3900
Ⓒ $5100
How much cash did the Company collect on Accounts Receivable in 20X3?
O $15500
$26800
O $15300
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