The following information is from the 2017 records of Lane Bicycle Shop: $\begin{array}{|l|c|}
\hline\text { Accounts receivable, December 31, 2017 } & \$ 40,000 \text { (debit) } \
\hline\text { Allowance for Bad Debts, December 31,2017 } \
\text { prior to adjustment }& 1,900 \text { (debit) }\
\hline\text { Net credit sales for } 2017 & 177,000 \
\hline \text { Accounts written off as uncollectible during } \
2017& 18,000 \
\hline\text { Cash sales during } 2017& 27,000\
\hline
\end{array}$ Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $5,000 of accounts receivable will be uncollectible.Calculate the ending balance of Allowance for Bad Debts,after the adjustment for bad debts expense,at December 31,2017.

Question

The following information is from the 2017 records of Lane Bicycle Shop: $\begin{array}{|l|c|}
\hline\text { Accounts receivable, December 31, 2017 } & \$ 40,000 \text { (debit) } \
\hline\text { Allowance for Bad Debts, December 31,2017 } \
\text { prior to adjustment }& 1,900 \text { (debit) }\
\hline\text { Net credit sales for } 2017 & 177,000 \
\hline \text { Accounts written off as uncollectible during }  \
2017& 18,000 \
\hline\text { Cash sales during } 2017& 27,000\
\hline
\end{array}$ Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $5,000 of accounts receivable will be uncollectible.Calculate the ending balance of Allowance for Bad Debts,after the adjustment for bad debts expense,at December 31,2017.

Quizplus · Accepted Answer

The Answer of The following information is from the 2017 records of Lane Bicycle Shop: $\begin{array}{|l|c|}
\hline\text { Accounts receivable, December 31, 2017 } & \$ 40,000 \text { (debit) } \
\hline\text { Allowance for Bad Debts, December 31,2017 } \
\text { prior to adjustment }& 1,900 \text { (debit) }\
\hline\text { Net credit sales for } 2017 & 177,000 \
\hline \text { Accounts written off as uncollectible during }  \
2017& 18,000 \
\hline\text { Cash sales during } 2017& 27,000\
\hline
\end{array}$ Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $5,000 of accounts receivable will be uncollectible.Calculate the ending balance of Allowance for Bad Debts,after the adjustment for bad debts expense,at December 31,2017.

The Following Information Is from the 2017 Records of Lane