Labrador Inc. has the following information available for the current year: Net sales $768,000 Bad Debt Expense $42,000 Accounts Receivable, Beginning of Year $138,000 Accounts Receivable, End of Year $73,000 Allowance For Doubtful Accounts, Beginning of Year $60,000 Allowance For Doubtful Accounts, End of Year $80,000 What was the amount of write-offs during the year

1 answer
Question:

Labrador Inc. has the following information available for the current year: Net sales $768,000 Bad Debt Expense $42,000 Accounts Receivable, Beginning of Year $138,000 Accounts Receivable, End of Year $73,000 Allowance For Doubtful Accounts, Beginning of Year $60,000 Allowance For Doubtful Accounts, End of Year $80,000 What was the amount of write-offs during the year

Answers

Answer:For Accounts Receivable, the write-off is the total payments and discounts of $771,000 $(138,000 + 768,000 - 42,000 - 93,000) or beginning receivables plus net sales minus bad debts and ending receivables.For Allowance for Doubtful Accounts, the write-off is the amount taken to the Income Statement, that is $20,000 as additional expense for the period, by which the Allowance increased from $60,000 to $80,000 from beginning to end of the period.Explanation:The Accounts Receivable opening balance of $138,000 increased by the net sales of $768,000.  It was reduced by Bad Debts of $42,000 and payments and discounts in order to arrive at an ending balance of $73,000.For the Allowance for Doubtful Accounts, the beginning balance is compared to the ending balance to ascertain if there is an increase or a decrease.  An increase signals additional expense to the Income Statement while a decrease shows expense recovery.

Similar Solved Questions

1 answer

6.89 liters of bromine gas to grams

6.89 liters of bromine gas to grams...
2 answers

Simplify the expression below b^9 x b^6 x b^5

Simplify the expression below b^9 x b^6 x b^5...
1 answer

Mass of lead = 567.5 g Volume of lead = 50.0 What is the density of lead?

Mass of lead = 567.5 g Volume of lead = 50.0 What is the density of lead?...
1 answer

The temperature in Frostburg is -7°C. This is 18°C less than the temperature in Coldspot. Find the temperature in Coldspot.

The temperature in Frostburg is -7°C. This is 18°C less than the temperature in Coldspot. Find the temperature in Coldspot....
2 answers

2x+7y=11 Solve for y?

2x+7y=11 Solve for y?...
2 answers

What role did Christianity play in slavery? Group of answer choices Few slaveholders wanted their slaves to learn. Slave preachers struggled to win respect among fellow slaves. Slaves rejected the story of Moses as untrue. Few slaves were interested in Christianity, so they stayed focused on their traditional African religions. Teaching slaves about Christianity helped to reinforce the owners’ ideas on paternalism.

What role did Christianity play in slavery? Group of answer choices Few slaveholders wanted their slaves to learn. Slave preachers struggled to win respect among fellow slaves. Slaves rejected the story of Moses as untrue. Few slaves were interested in Christianity, so they stayed focused on their t...
1 answer

If a number is inreased by 6 , the result is 50

if a number is inreased by 6 , the result is 50...
1 answer

PLEASE HELP. I WILL ACUALLY DIE IF NO ONE HELPS MEEEEE

PLEASE HELP. I WILL ACUALLY DIE IF NO ONE HELPS MEEEEE...
1 answer

Prepare journal entries to record the following transactions and events that occurred in Marilyn County during calendar year 2019: 1. The legislature adopted the following budget: Estimated revenues and other sources: Property taxes $1,740,000 Sales taxes 1,000,000 Use of fund balance 10,000 Total $2,750,000 Appropriations: General government— Salaries

Prepare journal entries to record the following transactions and events that occurred in Marilyn County during calendar year 2019: 1. The legislature adopted the following budget: Estimated revenues and other sources: Property taxes $1,740,000 Sales taxes ...
1 answer

Jane, Shen, and Chris sent a total of 152 text messages during the weekend. Shen sent 4 times as many messages as Chris. Jane sent 8 more messages than Chris. How many messages did they each send?

Jane, Shen, and Chris sent a total of 152 text messages during the weekend. Shen sent 4 times as many messages as Chris. Jane sent 8 more messages than Chris. How many messages did they each send?...
1 answer

Can anyone help me in pre-cal tan^2 x = tan xsin^2 x = sin x

can anyone help me in pre-cal tan^2 x = tan xsin^2 x = sin x...
1 answer

Help pls pls help pls

Help pls pls help pls...
1 answer

Determine whether each set of side lengths could be the sides of a right triangle. Drag and drop each set of side lengths to the correct box. 10.5cm,20.8cm,23.3cm 6cm, 22.9cm,20.1cm

Determine whether each set of side lengths could be the sides of a right triangle. Drag and drop each set of side lengths to the correct box. 10.5cm,20.8cm,23.3cm 6cm, 22.9cm,20.1cm...
2 answers

What is the answer?????​

what is the answer?????​...
1 answer

What compromises were proposed to settle the issues raised by the wilmot proviso?

What compromises were proposed to settle the issues raised by the wilmot proviso?...
1 answer

The Rockets lost three of the 20 games played this season what fraction of the game did the Rockets lose?

the Rockets lost three of the 20 games played this season what fraction of the game did the Rockets lose?...
1 answer

The MAIN function of political parties in the United States is to

The MAIN function of political parties in the United States is to...
2 answers

Write 4 sentences about a city in the United States you would like to live in.

Write 4 sentences about a city in the United States you would like to live in....

-- 0.052743--