Vancouver Company began 2016 with balances in accounts receivable and allowance for doubtful accounts of $92,800 and $9,280,respectively.The company reported credit sales of $875,550 during the year,collected $870,200,and wrote off $6,800 of uncollectible accounts.Vancouver estimates that 10% of its accounts receivable balance will be uncollectible.
Required:
a)What will Vancouver report as its allowance for doubtful accounts on December 31,2016?
b)Prepare the adjusting journal entry for December 31,2016 to recognize uncollectible accounts expense.
c)Calculate Vancouver's net realizable value of accounts receivable on December 31,2016.

Question

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The Answer of Vancouver Company began 2016 with balances in accounts receivable and allowance for doubtful accounts of $92,800 and $9,280,respectively.The company reported credit sales of $875,550 during the year,collected $870,200,and wrote off $6,800 of uncollectible accounts.Vancouver estimates that 10% of its accounts receivable balance will be uncollectible.
Required:
a)What will Vancouver report as its allowance for doubtful accounts on December 31,2016?
b)Prepare the adjusting journal entry for December 31,2016 to recognize uncollectible accounts expense.
c)Calculate Vancouver's net realizable value of accounts receivable on December 31,2016.

Vancouver Company Began 2016 with Balances in Accounts Receivable and Allowance