At December 31, 2019, Carl's Toys had a balance of $248,100 in its Accounts Receivable account and a credit balance of $900 in its Allowance for Doubtful Accounts account. Carl's Toys analyzed and aged its accounts receivable based on the following estimated uncollectible amounts:
The company bases its provision for credit losses on the aging analysis.
Required:
a. What amount of bad debt expense will Carl's Toys report in its 2019 income statement? (Round to nearest whole dollar amount.)
b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in its December 31, 2019, balance sheet?

Question

At December 31, 2019, Carl's Toys had a balance of $248,100 in its Accounts Receivable account and a credit balance of $900 in its Allowance for Doubtful Accounts account. Carl's Toys analyzed and aged its accounts receivable based on the following estimated uncollectible amounts:
  The company bases its provision for credit losses on the aging analysis.
Required:
a. What amount of bad debt expense will Carl's Toys report in its 2019 income statement? (Round to nearest whole dollar amount.)
b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in its December 31, 2019, balance sheet?

Quizplus · Accepted Answer

The Answer of At December 31, 2019, Carl's Toys had a balance of $248,100 in its Accounts Receivable account and a credit balance of $900 in its Allowance for Doubtful Accounts account. Carl's Toys analyzed and aged its accounts receivable based on the following estimated uncollectible amounts:
  The company bases its provision for credit losses on the aging analysis.
Required:
a. What amount of bad debt expense will Carl's Toys report in its 2019 income statement? (Round to nearest whole dollar amount.)
b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in its December 31, 2019, balance sheet?

At December 31, 2019, Carl's Toys Had a Balance of $248,100