Ask Question
3 October, 04:42

Samuel, Inc. has Accounts Receivable of $260,000 and an Allowance for Doubtful Accounts of $16,000. If it writes-off a customer account balance of $1,600, what is the amount of its net accounts receivable

+5
Answers (1)
  1. 3 October, 06:21
    0
    Net accounts receivable before write-off = $244,000

    Net accounts receivable after write-off = $229600

    Explanation:

    given data

    Accounts Receivable = $260,000

    Allowance for Doubtful Accounts = $16,000

    writes-off customer account balance = $1,600

    solution

    we get her Net accounts receivable that is express as

    Net accounts receivable = Accounts Receivable - Allowance for Doubtful Accounts ... 1

    so here before write-off Net accounts receivable is

    Net accounts receivable = $260,000 - $16,000

    Net accounts receivable = $244,000

    and

    after write-off

    writes-off a customer account balance entry as

    Allowance Doubtful Account = $1,600 Debit

    Accounts Receivable = $1,600 Credit

    so

    Net accounts receivable after write-off

    Net accounts receivable = $244,000 - ($16000 - 1600)

    Net accounts receivable = $229600
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Samuel, Inc. has Accounts Receivable of $260,000 and an Allowance for Doubtful Accounts of $16,000. If it writes-off a customer account ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers