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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.

#### Solution Preview

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