During the year, Bonita Industries made an entry to write off a $33300 uncollectible account. Before this entry was made, the balance in accounts receivable was $397000 and the balance in the allowance account was $33700. The accounts receivable amount expected to be collected after the write-off entry was

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Business

Gilberto Bates

11 October, 21:42

During the year, Bonita Industries made an entry to write off a $33300 uncollectible account. Before this entry was made, the balance in accounts receivable was $397000 and the balance in the allowance account was $33700. The accounts receivable amount expected to be collected after the write-off entry was

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Nicolas Frank · Answer 1

Net Accounts Receivable $363300

When the allowance for uncollectibles is maintained the allowance for uncollectibles method is used in which allowance for uncollectibles is deducted from the accounts receivables.

Explanation:

If the method of allowance for uncollectibles is used the amount of allowance for uncollectibles is deducted from the accounts receivables.

Bonita Industries

Accounts Receivable $397000

Less Allowance For Uncollectible $33700

Net Accounts Receivable $363300

IF the direct write off method is used the bad debts are directly deducted from the accounts receivable.

Bonita Industries

Accounts Receivable $397000

Less Uncollectibles $33300

Net Accounts Receivable $363700