At January 1, Davidson Services has the following balances: During the year, Davidson has $104,000 of credit sales, collections of $100,000, and write-offs of $1,400.
Davidson records Uncollectible accounts expense at the end of the year using the percent-of-sales method, and applies a rate of 1.1%, based on past history.
Prior to the year-end entry to adjust the Uncollectible accounts expense, what is the balance in Accounts receivable?

Question

At January 1, Davidson Services has the following balances:  During the year, Davidson has $104,000 of credit sales, collections of $100,000, and write-offs of $1,400.
Davidson records Uncollectible accounts expense at the end of the year using the percent-of-sales method, and applies a rate of 1.1%, based on past history.
Prior to the year-end entry to adjust the Uncollectible accounts expense, what is the balance in Accounts receivable?

Quizplus · Accepted Answer

The Answer of At January 1, Davidson Services has the following balances:  During the year, Davidson has $104,000 of credit sales, collections of $100,000, and write-offs of $1,400.
Davidson records Uncollectible accounts expense at the end of the year using the percent-of-sales method, and applies a rate of 1.1%, based on past history.
Prior to the year-end entry to adjust the Uncollectible accounts expense, what is the balance in Accounts receivable?

At January 1, Davidson Services Has the Following Balances