Beebo Ltd. provides for doubtful accounts based on 6% of credit sales. The following data are available for 2021.
$$\begin{array} { | l | r | }
\hline \text { Credit sales during } 2021 & \$ 3,550,000 \
\hline \text { Allowance for doubtful accounts, Jan 1, 2021 } & 59,000 \mathrm { Cr } \
\hline \text { Collection of accounts written off in prior years } & 3,500 \
\hline \text { Customer accounts written off as uncollectable during } 2021 & 37,000 \
\hline
\end{array}$$ How much should the balance in the allowance for doubtful accounts be at December 31, 2021?

Question

Beebo Ltd. provides for doubtful accounts based on 6% of credit sales. The following data are available for 2021.
 $$\begin{array} { | l | r | } 
\hline \text { Credit sales during } 2021 & \$ 3,550,000 \
\hline \text { Allowance for doubtful accounts, Jan 1, 2021 } & 59,000 \mathrm { Cr } \
\hline \text { Collection of accounts written off in prior years } & 3,500 \
\hline \text { Customer accounts written off as uncollectable during } 2021 & 37,000 \
\hline
\end{array}$$ How much should the balance in the allowance for doubtful accounts be at December 31, 2021?

Quizplus · Accepted Answer

The Answer of Beebo Ltd. provides for doubtful accounts based on 6% of credit sales. The following data are available for 2021.
 $$\begin{array} { | l | r | } 
\hline \text { Credit sales during } 2021 & \$ 3,550,000 \
\hline \text { Allowance for doubtful accounts, Jan 1, 2021 } & 59,000 \mathrm { Cr } \
\hline \text { Collection of accounts written off in prior years } & 3,500 \
\hline \text { Customer accounts written off as uncollectable during } 2021 & 37,000 \
\hline
\end{array}$$ How much should the balance in the allowance for doubtful accounts be at December 31, 2021?

Beebo Ltd Provides for Doubtful Accounts Based on 6% of Credit