Horton Industries reported net income of $150,000 for the current year. The balances in its accounts receivable and allowance for bad debts accounts are shown below:
$$\begin{array} { | l | r | r | }
\hline { \text { Account } } & \mathbf { 1 2 / 3 1 / 2 0 1 9 } & { \mathbf { 1 / 1 / 2 0 1 9 } } \
\hline \text { Accounts Receivable } & \$ 52,000 & \$ 45,000 \
\hline \text { Allowance for Uncollectible Accounts } & 10,000 & 7,000 \
\hline & & \
\hline
\end{array}$$
In addition, the company recorded $11,000 of bad debt expense and wrote off $8,000 of uncollectible accounts. There are no other relevant transactions or account balances. Prepare the operating section of the cash flow statement under the indirect method.

Question

Horton Industries reported net income of $150,000 for the current year. The balances in its accounts receivable and allowance for bad debts accounts are shown below:
 $$\begin{array} { | l | r | r | } 
\hline  { \text { Account } } & \mathbf { 1 2 / 3 1 / 2 0 1 9 } &  { \mathbf { 1 / 1 / 2 0 1 9 } } \
\hline \text { Accounts Receivable } & \$ 52,000 & \$ 45,000 \
\hline \text { Allowance for Uncollectible Accounts } & 10,000 & 7,000 \
\hline & & \
\hline
\end{array}$$ 
In addition, the company recorded $11,000 of bad debt expense and wrote off $8,000 of uncollectible accounts. There are no other relevant transactions or account balances. Prepare the operating section of the cash flow statement under the indirect method.

Quizplus · Accepted Answer

The Answer of Horton Industries reported net income of $150,000 for the current year. The balances in its accounts receivable and allowance for bad debts accounts are shown below:
 $$\begin{array} { | l | r | r | } 
\hline  { \text { Account } } & \mathbf { 1 2 / 3 1 / 2 0 1 9 } &  { \mathbf { 1 / 1 / 2 0 1 9 } } \
\hline \text { Accounts Receivable } & \$ 52,000 & \$ 45,000 \
\hline \text { Allowance for Uncollectible Accounts } & 10,000 & 7,000 \
\hline & & \
\hline
\end{array}$$ 
In addition, the company recorded $11,000 of bad debt expense and wrote off $8,000 of uncollectible accounts. There are no other relevant transactions or account balances. Prepare the operating section of the cash flow statement under the indirect method.

Horton Industries Reported Net Income of $150,000 for the Current