Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2022, the balance in tabor company's

On January 1,2022, the balance in Tabor Company's Allowance for Bad Debts account was $13,034....

90.2K

Verified Solution

Question

Accounting

On January 1,2022, the balance in Tabor Company's Allowance for Bad Debts account was $13,034. During the first 11 months of the year, bad debts expense of $21,902 was recognized. The balance in the Allowance for Bad Debts account at November 30,2022, was $9,751.
Required:
a. What was the total of accounts written off during the first 11 months? (Hint. Make a T-account for the Allowance for Bad Delsts account.)
b. As the result of a comprehensive analysis, it is determined that the December 31,2022, balance of the Allowance for Bad Debts account should be $9,474. Show the adjustment required in the journal entry format.
c. During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,247 receivable from a bankrupt customer has not been written off but was considered in the determination of the appropriate year-end balance of the Allowance for Bad Debts account balance. What is the effect of write-off on 2022 net income?
Complete this question by entering your answers in the tabs below.
What was the total of accounts written off during the first 11 months? (Hint: Make a T-account for the Allowance for Bad Debts account.)
Bad debts write-off
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students