Problem 5 (5 Points) Wellington Corp. has 31 and sales on credit during $24,000
ID: 2565483 • Letter: P
Question
Problem 5 (5 Points) Wellington Corp. has 31 and sales on credit during $24,000 in the allowance for doubtful accounts. If the outstanding accounts receivable totaling $5 million as of December the year of $30 million. There is also a debit balance of company estimates that 8% of its oulstanding receivables will be uncollectible, what will be the balance in the allowance for ul accounts after the year-end adjustment to record bad debt expense? You MUST doubtf show your work to get credit. Problem 6 (5 Points) At the close of its first year of operations, December 31, 2017, Ming Company had accounts receivable of $1,620,000, after deducting the related allowance for doubtful accounts. During 2017, the company had charges to bad debt expense of $270,000 and wrote off, as uncollectible, accounts receivable of $120,000. What should the company report on its balance sheet at December 31, 2017, as accounts receivable before the allowance for doubtful accounts? You MUST show your work to get credit.Explanation / Answer
For the above question, I am considering ony Question No- 6
On December 2017-
1) Account receivable- $1620000 (After deducting allowance for doubtful debts)
During the Year 2017-
2) Bad Debts Expenses- $270000
3) Uncollectible Accounts Receivable- $120000
Now for December 2017
Accounts Receivable before allowance of bad debts and uncollectible accounts receivable = 1+2+3
= 1620000+270000+120000 = $2010000