On January 1,2016,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 2016 Burton had credit sales of $244,000 and ended the year with a balance in Accounts Receivable of $48,000.During 2016 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.
a)After adjusting entries on 12/31/16,what will be the balance in the Allowance for Doubtful Accounts?
b)By what amount did net realizable value of accounts receivable decrease in 2016 due to the write-off of the receivable?
c)What amount of cash was collected from customers during 2016?

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The Answer of On January 1,2016,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 2016 Burton had credit sales of $244,000 and ended the year with a balance in Accounts Receivable of $48,000.During 2016 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.
a)After adjusting entries on 12/31/16,what will be the balance in the Allowance for Doubtful Accounts?
b)By what amount did net realizable value of accounts receivable decrease in 2016 due to the write-off of the receivable?
c)What amount of cash was collected from customers during 2016?

On January 1,2016,Burton Company Had a Balance in Accounts Receivable