At January 1,Everbright Sales has the following balances: During the year,Everbright has $150,000 of credit sales,collections of $140,000,and write-offs of $3,000.Everbright records Uncollectible accounts expense at the end of the year using the aging method.At the end of the year,the aging analysis produces a figure of $1,900,being the estimate of uncollectible accounts at end of year.
- Before the year-end entry to adjust the Uncollectible accounts expense is made,what is the balance in the Allowance for uncollectible accounts?

Question

At January 1,Everbright Sales has the following balances:  During the year,Everbright has $150,000 of credit sales,collections of $140,000,and write-offs of $3,000.Everbright records Uncollectible accounts expense at the end of the year using the aging method.At the end of the year,the aging analysis produces a figure of $1,900,being the estimate of uncollectible accounts at end of year. 
- Before the year-end entry to adjust the Uncollectible accounts expense is made,what is the balance in the Allowance for uncollectible accounts?

Quizplus · Accepted Answer

A) Calculations: $3,000 - $1,200 = $1,800

At January 1,Everbright Sales Has the Following Balances: During