Bering Computers Has Credit Sales of $600,000 in 2020 and a Debit

question 17

Essay

Bering Computers has credit sales of $600,000 in 2020 and a debit balance of $1,600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2020, $105,000 of accounts receivable remain uncollected. The credit manager of Bering prepared an aging schedule of accounts receivable and estimates that $5,600 will prove to be uncollectible.
On April 15, 2021 Bering Computers writes off the $1,500 balance owed by A. Justice.
Instructions
a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2020.
b) Show the statement of financial position presentation of accounts receivable on December 31, 2020.
c) On April 15, before the writeoff, assume the balance of Accounts Receivable account is $123,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record the writeoff of the Justice account. What it is the net realizable value of the accounts receivable before and after the writeoff?

---

Definitions:

Traditions

The passing down of customs, beliefs, and practices from one generation to another, often serving as a component of cultural or religious identity.

Steps

A series of actions or movements taken to achieve a particular end.

Personal Responsibility

The idea that individuals are accountable for their actions and decisions, and have the obligation to act in certain ways in accordance with moral or ethical principles.

Step 6

In the context of 12-step programs, refers to being entirely ready to have a higher power remove all these defects of character.