Ask Question
8 March, 07:49

Before year-end adjusting entries, Dunn Company's account balances at December 31, 2020, for accounts receivable and the related allowance for doubtful accounts were $1,500,000 and $90,000, respectively. An aging of accounts receivable indicated that $125,000 of the December 31 receivables are expected to be uncollectible. The accounts receivable amount expected to be collected after adjustment for bad debt expense is

A. $1,465,000

B. $1,375,000

C. $1,285,000

D. $1,410,000

+1
Answers (1)
  1. 8 March, 11:43
    0
    Option (B) is correct.

    Explanation:

    Given that,

    Accounts receivables = $1,500,000

    Allowance for doubtful accounts = $90,000

    Expected uncollectibles = $125,000

    The collection of accounts receivables after the adjustment for bad debt expense is determined by deducting the expected uncollectibles from the total amount of accounts receivables.

    Accounts receivable amount expected to be collected after adjustment for bad debt expense:

    = Accounts receivables - Expected uncollectibles

    = $1,500,000 - $125,000

    = $1,375,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Before year-end adjusting entries, Dunn Company's account balances at December 31, 2020, for accounts receivable and the related allowance ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers