This paper circulates around the core theme of the allowance for doubtful accounts had together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Question
At January 1, 2014, Famous Thirty Three Company reported accounts receivable
of $100,000 and
the allowance for doubtful accounts had a $15,000 credit balance. Famous
Thirty Three Company
records bad debt expense using the net credit sales method and estimates that
5% of its credit
sales each year will prove to be uncollectible. Famous Thirty Three Company
reported the
following information for 2014 and 2015:
2014
2015
Sales revenue
?
$428,000
Cash collections from customers
$370,000
$410,000
Accounts receivable at December 31
?
?
Allowance for doubtful accounts at December 31
$29,900
$59,600
Write-offs
$9,400
?
Recoveries
$4,700
?
At December 31, 2015, Famous Thirty Three Company`s net realizable value of
accounts receivable
totaled $67,200.
Calculate the amount of recoveries recorded by Famous Thirty Three Company in
2015. Do not use
decimals in your answer.
