Pessimist Inc.reported credit sales of $5,400,000 and $4,800,000 for the years ended December 31,2017 and 2018,respectively.Information on trade accounts receivable for the company is presented below.

The balance of the allowance for doubtful accounts as of January 1,2017 was $15,000.In addition,you learn that the company wrote off specific accounts of $18,500 in 2017,and the bad debts expense was $13,000 in 2018.
Required:
a.Determine the bad debts expense for 2017.
b.Determine the amount of receivables written off during 2018.
c.Prepare the journal entry to record the bad debts expense for 2017.

Question

Pessimist Inc.reported credit sales of $5,400,000 and $4,800,000 for the years ended December 31,2017 and 2018,respectively.Information on trade accounts receivable for the company is presented below.
  
The balance of the allowance for doubtful accounts as of January 1,2017 was $15,000.In addition,you learn that the company wrote off specific accounts of $18,500 in 2017,and the bad debts expense was $13,000 in 2018.
Required:
a.Determine the bad debts expense for 2017.
b.Determine the amount of receivables written off during 2018.
c.Prepare the journal entry to record the bad debts expense for 2017.

Quizplus · Accepted Answer

The Answer of Pessimist Inc.reported credit sales of $5,400,000 and $4,800,000 for the years ended December 31,2017 and 2018,respectively.Information on trade accounts receivable for the company is presented below.
  
The balance of the allowance for doubtful accounts as of January 1,2017 was $15,000.In addition,you learn that the company wrote off specific accounts of $18,500 in 2017,and the bad debts expense was $13,000 in 2018.
Required:
a.Determine the bad debts expense for 2017.
b.Determine the amount of receivables written off during 2018.
c.Prepare the journal entry to record the bad debts expense for 2017.