contestada

The following information is taken from the records of Salzl Corp. at its December 31 year-end:
2019 2020
Accounts written off
During 2019 $2,400
During 2020 $1,000
Recovery of accounts written off
Recovered in 2020 300
Allowance for doubtful accounts
(adjusted balance)
At December 31, 2018 8,000
At December 31, 2019 9,000
Salzl had always estimated its uncollectible accounts at two per cent of sales. However, because of large discrepancies between the estimated and actual amounts, Hilroy decided to estimate its December 31, 2019 uncollectible accounts by preparing an ageing of its accounts receivable. An amount of $10,000 was considered uncollectible at December 31, 2020.
Required:
1. Calculate the amount of bad debt expense for 2019.
2. Calculate the amount of bad debt expense for 2020.

Respuesta :

Tundexi

Answer:

Bad Debt Expenses for 2019

Particular                                                   Amount

Allowances for doubtful debts balances as on Dec 31   $9,000

Add: Write off during the year                         $2,400

Less: Closing balance allowance for doubtful debts balance as on Dec 31, 2018                                   ($8,000)

Bad debts expenses for 2019                       $3400

Bad debt Expenses for 2020

Particular                                                   Amount

Allowances for doubtful debts balances as on Dec $10,000

Add: Write off during the year                           $2,400

Less: Closing balance allowance doubtful debt balance as at Dec 31, 2019                                                    ($9000)

Add: Recovery or bad debt recovered                 $300

Bad debts expenses for 2020                            $3,700

 

Otras preguntas