16 September, 19:15

# During the year, Swifty Corporation made an entry to write off a \$33900 uncollectible account. Before this entry was made, the balance in accounts receivable was \$423000 and the balance in the allowance account was \$32500. The accounts receivable amount expected to be collected after the write-off entry was

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Answers (1)
1. 16 September, 19:49
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The accounts receivable amount expected to be collected after the write-off entry was \$390,500.

Explanation:

Account Receivable Balance = \$423,000

Less: Allowance Account Balance = \$32,500

New Account Receivable Balance = \$390,500

Since the write off entry was not made and there is an account for allowance of uncollectible account so at that the entry was made as follows:

Debit: Account Receivable \$32,500

Credit: Uncollectible account expense \$32,500

To record uncollectible expense.

Since we are certain that \$32,500 will not received and recorded as bad debt so we simply deduct this amount from account receivable balance to derive new balance as shown above.
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