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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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  1. 11 October, 22:27
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    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
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