Optura Computer Company uses the allowance method to account for bad debts. Indicate the effect of each of the following transactions on gross Accounts Receivable, the Allowance for Uncollectible Accounts, net Accounts Receivable, and Bad Debt Expense. Use (+) for increase, (-) for decrease, and (0) for no effect.
a. A customer pays
b. 1% of $500,000 in
c. 5% of $100,000 in
d. An account

Question

Optura Computer Company uses the allowance method to account for bad debts. Indicate the effect of each of the following transactions on gross Accounts Receivable, the Allowance for Uncollectible Accounts, net Accounts Receivable, and Bad Debt Expense. Use (+) for increase, (-) for decrease, and (0) for no effect.
  a. A customer pays
  b. 1% of $500,000 in
  c. 5% of $100,000 in
  d. An account

Quizplus · Accepted Answer

The Answer of Optura Computer Company uses the allowance method to account for bad debts. Indicate the effect of each of the following transactions on gross Accounts Receivable, the Allowance for Uncollectible Accounts, net Accounts Receivable, and Bad Debt Expense. Use (+) for increase, (-) for decrease, and (0) for no effect.
  a. A customer pays
  b. 1% of $500,000 in
  c. 5% of $100,000 in
  d. An account

Optura Computer Company Uses the Allowance Method to Account for Bad