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Arbour Inc. had the following balances on its balance sheet at the beginning of year 4....

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Accounting

Arbour Inc. had the following balances on its balance sheet atthe beginning of year 4. The balances in the two accounts are"normal" (so Accounts receivable is a positive asset and theallowance is a negative asset). Note that net realizable value isNOT an account balance. It is Accounts receivable net of theallowance balance.

AccountsReceivable.................................61000
Allowance for uncollectibleaccounts........7300
Net realizablevalue...................................53700

During the year, Arbour recorded the following:
--Sales on account of.....................$660000
--Collections on account of............$633600
--Write-offs of delinquent accounts.... $18700

At the end of Year4, Arbour Company recorded an adjusting entrythat recognized $19800 of bad debt expense.

Enter all normal balances as positive numbers (just a number, no+ sign.)

1. What would be the balance in Accounts Receivable after all ofthe entries above?

2. What would be the balance in the Allowance for UncollectibleAccounts after all of the entries above?

Answer & Explanation Solved by verified expert
4.2 Ratings (811 Votes)

A Balance in Accounts Receivable
Opening Balance $             61,000.00
Sales on account $          660,000.00
Collections on account $        (633,600.00)
Write-offs of delinquent accounts $          (18,700.00)
Ending Balance $             68,700.00
B Balance in the Allowance for Uncollectible Accounts
Opening Balance $               7,300.00
bad debt expense. $             19,800.00
Write-offs of delinquent accounts $          (18,700.00)
Ending Balance $               8,400.00

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