Estimating Uncollectible Accounts and Reporting Receivables over Multiple Periods Barth Company, which has been in...
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Estimating Uncollectible Accounts and Reporting Receivables over Multiple Periods Barth Company, which has been in business for three years, makes all of its sales on credit and does not offer cash discounts. Its credit sales, customer collections, and write-offs of uncollectible accounts for its first three years follow:
Year
Sales
Collections
Accounts Written Off
2015
$751,000
$733,000
$5,300
2016
876,000
864,000
5,800
2017
972,000
938,000
6,500
Barth uses the allowance method of recognizing credit losses that provides for such losses at the rate of 1% of sales. (This means the allowance account is increased by 1% of credit sales regardless of any write-offs and unused balances.)
What amount for accounts receivable is reported on its balance sheet at the end of 2017? Answer
What total amount of bad debts expense appears on its income statement for each of the three years? 2015 Answer 2016 Answer 2017 Answer
What amount for allowance for uncollectible accounts is reported on its balance sheet at the end of 2017? Answer
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