On January 1, Year 2, Burton Company had a balance in Accounts Receivable of $90,000 and a balance in the Allowance for Doubtful Accounts account of $2,400. During Year 2, Burton recognized $244,000 of service revenue earned on account and ended the year with a balance in Accounts Receivable of $48,000. During Year 2, Burton also wrote off $1,100 of receivables. Burton uses the allowance method for uncollectible accounts and assumes that 2% of the sales on account will not be collected.
Required:After adjusting entries on December 31, Year 2, what will be the balance in the Allowance for Doubtful Accounts?By what amount did net realizable value of accounts receivable decrease in Year 2 due to the write-off of the receivable?What amount of cash was collected from customers during Year 2?

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The Answer of On January 1, Year 2, Burton Company had a balance in Accounts Receivable of $90,000 and a balance in the Allowance for Doubtful Accounts account of $2,400. During Year 2, Burton recognized $244,000 of service revenue earned on account and ended the year with a balance in Accounts Receivable of $48,000. During Year 2, Burton also wrote off $1,100 of receivables. Burton uses the allowance method for uncollectible accounts and assumes that 2% of the sales on account will not be collected.
Required:After adjusting entries on December 31, Year 2, what will be the balance in the Allowance for Doubtful Accounts?By what amount did net realizable value of accounts receivable decrease in Year 2 due to the write-off of the receivable?What amount of cash was collected from customers during Year 2?

On January 1, Year 2, Burton Company Had a Balance