Share
Explore BrainMass

Accounts receivables :Balance sheet

At the close of its first year of operations, on December 31, 2005, the Walker Company had accounts receivable of $250,000, which was net of the related allowance for doubtful accounts. During 2005, the company had charged to bad debt expense of $40,000 and wrote off, as uncollectible, accounts receivable of $10,000.

Required

What should the company report on its balance sheet at December 31, 2005, as accounts receivable before the allowance for doubtful accounts?

Solution Preview

Hello,
Entry for recording bad debts is:-

Debit Credit
------- -------
Bad debt expense 40000
...

Solution Summary

Solution contains calculations of accounts receivable before the allowance for doubtful accounts.

$2.19