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Uncollectible Accounts for Ed Co.

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Ed Co. prepared an aging of its accounts receivable at December 31, 2004 and determined that the net realizable value of the receivables was $290,000. Additional information is available as follows:
Allowance for uncollectible accounts at 1/1/04?credit balance $ 29,000
Accounts written off as uncollectible during 2004 23,000
Accounts receivable at 12/31/04 320,000
Uncollectible accounts recovered during 2004 5,000
For the year ended December 31, 2004, Ed's uncollectible accounts expense would be
a. $18,000.
b. $23,000.
c. $11,000.
d. $19,000.

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Estimated uncollectible expenses for 2004 should be (d) $19000 as explained below.

Account Receivable 31st Dec 2004 (Dr Bal) $320000

Add:: Amount previously written off Reversed $5000

Less: Amount recovered from the accounts previously written off ...

Solution Summary

The solution examines uncollectible accounts.

$2.19
See Also This Related BrainMass Solution

Uncollectibles for Ed Co.

The following accounts were abstracted from Ed Co.'s unadjusted trial balance at December 31, 2007:
Debit Credit
Accounts receivable $700,000
Allowance for uncollectible accounts 8,000
Net credit sales $3,000,000

Ed's estimates that 2% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2007, the allowance for uncollectible accounts should have a credit balance of?

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