Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 41

Accounting for Uncollectible Accounts: A Balance Sheet Approach
Pachel Corporation reports the following information pertaining to its accounts receivable:

The company's credit department provided the following estimates regarding the percent of accounts expected to eventually be written off from each category listed above:

The company uses a balance sheet approach to estimate credit losses.
a Record the company's uncollectible accounts expense, assuming it has a $1,400 credit balance in its Allowance for Doubtful Accounts prior to making the necessary adjustment.
b Record the company's uncollectible accounts expense, assuming it has a $1,600 debit balance in its Allowance for Doubtful Accounts prior to making the necessary adjustment.