Larsen Company Began Year 2 with Balances in Accounts Receivable

question 55

Essay

Larsen Company began Year 2 with balances in accounts receivable and allowance for doubtful accounts of $45,700 and $1,280, respectively. The company reported credit sales of $475,250 during the year, collected $480,200, and wrote off $800 of uncollectible accounts. Larsen Company estimates that 12% of its accounts receivable balance will be uncollectible.
Required:Calculate Larsen Company's uncollectible accounts expense for Year 2.What will Larsen report as its allowance for doubtful accounts on December 31, Year 2?Calculate Larsen's net realizable value of accounts receivable on December 31, Year 2.

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Definitions:

Gini Index Scores

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Symbolic Interactionism

A sociological perspective that emphasizes the role of symbols and language as core elements of all human interaction.

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A theoretical framework in sociology that views society as a complex system whose parts work together to promote solidarity and stability.