Glendale Sporting Goods reports the following on its 2016 balance sheet:
Company records reveal that Denise Butler owes Glendale Sporting Goods $4,600. Just after 2016 year- end, Denise Butler declares bankruptcy and it becomes clear to Glendale Sporting Goods that the company will not be able to recover any money from Butler.
Indicate how this information affects the balance sheets and income statements in 2016 and 2017.

Question

Glendale Sporting Goods reports the following on its 2016 balance sheet:
  Company records reveal that Denise Butler owes Glendale Sporting Goods $4,600. Just after 2016 year- end, Denise Butler declares bankruptcy and it becomes clear to Glendale Sporting Goods that the company will not be able to recover any money from Butler.
Indicate how this information affects the balance sheets and income statements in 2016 and 2017.

Quizplus · Accepted Answer

The Answer of Glendale Sporting Goods reports the following on its 2016 balance sheet:
  Company records reveal that Denise Butler owes Glendale Sporting Goods $4,600. Just after 2016 year- end, Denise Butler declares bankruptcy and it becomes clear to Glendale Sporting Goods that the company will not be able to recover any money from Butler.
Indicate how this information affects the balance sheets and income statements in 2016 and 2017.

Glendale Sporting Goods Reports the Following on Its 2016 Balance