On January 1, 2022, Willett Company's account balances for Accounts Receivable and the related Allowance for doubtful accounts were 3,600,000 and 90,000, respectively. During the year sales revenue totaled 40 million, of which 70% were credit sales and the remainder were cash sales. Altogether, cash collections from all customers amounted to 30 million. also, write-offs of accounts deemed to be uncollectible totaled 250,000. at the end of the year, an analysis of aged accounts receivable indicated that 2% of total gross receivables may be uncollectible. Determine the amount of bad debt expense for the year and net realizable value of receivables at the end of the year

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2022, Willett Company's account balances for Accounts Receivable and the related Allowance for doubtful accounts were 3,600,000 and 90,000, respectively. During the year sales revenue totaled 40 million, of which 70% were credit sales and the remainder were cash sales. Altogether, cash collections from all customers amounted to 30 million. also, write-offs of accounts deemed to be uncollectible totaled 250,000. at the end of the year, an analysis of aged accounts receivable indicated that 2% of total gross receivables may be uncollectible. Determine the amount of bad debt expense for the year and net realizable value of receivables at the end of the year

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