Explore BrainMass

Explore BrainMass

    Uncollectible Accounts for Ed Co.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:21 pm ad1c9bdddf
    https://brainmass.com/business/accounting/uncollectible-accounts-ed-co-133875

    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

    ADVERTISEMENT