This company sells merchandise only on credit. For the year ended December 31, Year 1, the following data are available:
$\begin{array}{lr}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Accounts receivable — January 1, Year 1 } & 225,000 \
\text { Allowance for doubtful accounts —January 1, Year 1 } & 15,000 \
\text { Collections during Year 1 } & 1,050,000 \
\text { Accounts written off as uncollected during Year 1 } & 10,000
\end{array}$
-Refer to Aardvark Resale.Assume that the company estimates bad debts based on the aging method and the aging schedule indicates that $30,100 of the year-end accounts receivable will be uncollected.
A) What amount will the company recognize as bad debts expense for the year?

Question

This company sells merchandise only on credit. For the year ended December 31, Year 1, the following data are available:
 $\begin{array}{lr}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Accounts receivable — January 1, Year 1 } & 225,000 \
\text { Allowance for doubtful accounts —January 1, Year 1 } & 15,000 \
\text { Collections during Year 1 } & 1,050,000 \
\text { Accounts written off as uncollected during Year 1 } & 10,000
\end{array}$
-Refer to Aardvark Resale.Assume that the company estimates bad debts based on the aging method and the aging schedule indicates that $30,100 of the year-end accounts receivable will be uncollected.
 A) What amount will the company recognize as bad debts expense for the year?

Quizplus · Accepted Answer

The Answer of This company sells merchandise only on credit. For the year ended December 31, Year 1, the following data are available:
 $\begin{array}{lr}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Accounts receivable — January 1, Year 1 } & 225,000 \
\text { Allowance for doubtful accounts —January 1, Year 1 } & 15,000 \
\text { Collections during Year 1 } & 1,050,000 \
\text { Accounts written off as uncollected during Year 1 } & 10,000
\end{array}$
-Refer to Aardvark Resale.Assume that the company estimates bad debts based on the aging method and the aging schedule indicates that $30,100 of the year-end accounts receivable will be uncollected.
 A) What amount will the company recognize as bad debts expense for the year?

This Company Sells Merchandise Only on Credit -Refer to Aardvark Resale