Answer:
- 1. What amount of bad debts was written off during the current year?
Allowance for Doubtful Accounts
$ 147 Credit
$ 94 Credit
$ 58 Debit
$ 183 Credit Balance
Dr Allowance for Uncollectible Accounts $ 58
Cr Accounts Receivable Net $ 58
2. Based on your answer to requirement (1), solve for cash collected from customers for the current year
Accounts Receivable
$ 11.785 Debit
$ 61.170 Debit
$ 58 Credit
$ 58.825 Credit
$ 14.072 Debit Balance
Explanation:
To know the amount that was written off during the current year, it's necessary to take the balance of the prior year and add the amount recorded as bad debt during the year, with these we calculate the amounts of difference between the balance of the current year and these values, the amount it's the value written-off during the current year.
- Hassell recorded bad debt expense of $94 and there were no bad debt recoveries during the current year.
Dr Bad Debt Expense $ 94
Cr Allowance for Uncollectible Accounts $ 94
1. What amount of bad debts was written off during the current year?
Allowance for Doubtful Accounts
$ 147 Credit
$ 94 Credit
$ 58 Debit
$ 183 Credit Balance
Dr Allowance for Uncollectible Accounts $ 58
Cr Accounts Receivable Net $ 58
2. Based on your answer to requirement (1), solve for cash collected from customers for the current year
With these value calculated we can know find the total amount collected during the year, as previously done, we apply the same procedure to find the amount, we know the movements done during the current year and by difference we find the total value collected.
Accounts Receivable
$ 11,785 Debit
$ 61,170 Debit
$ 58 Credit
$ 58,825 Credit
$ 14,072 Debit Balance
Dr Cash $ 58.825
Cr Accounts Receivable Net $ 58.825
