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18 September, 00:08

Aging Method On January 1, 2019, Hungryman, Inc., has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $1,271,000 Allowance for Doubtful Accounts (a credit balance) 42,000 During 2019, Hungryman had $18,500,000 of credit sales, collected $17,945,000 of accounts receivable, and wrote off $60,000 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $52,000 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accou

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  1. 18 September, 00:41
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    Bad debt expense $ 70,000

    Allowance for Uncollectible Accounts $70,000

    Explanation:

    Initial Balance

    Accounts Receivable $ 1.271,000

    Allowance for Uncollectible Accounts $ 42,000

    New Balance after the movements of sales and collection of 2019.

    Accounts Receivable $ 1.826,000

    Allowance for Uncollectible Accounts $ 42,000

    When the writte-off of uncollectible accounts

    Allowance for Uncollectible Accounts $ 60,000

    Accounts Receivable $ 60,000

    New balance of accounts after the write-off

    Accounts Receivable $ 1,766,000

    Allowance for Uncollectible Accounts $ 18,000 Debit

    Journal Entries due to the estimation of uncollectible

    Bad debt expense $ 70,000

    Allowance for Uncollectible Accounts $70,000

    Final Balance

    Accounts Receivable $ 1.766,000

    Allowance for Uncollectible Accounts $ 52,000
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