Larsen Company Began 2016 with Balances in Accounts Receivable and Allowance

question 142

Essay

Larsen Company began 2016 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:
a)Calculate Larsen Company's uncollectible accounts expense for 2016.
b)What will Larsen report as its allowance for doubtful accounts on December 31,2016?
c)Calculate Larsen's net realizable value of accounts receivable on December 31,2016.

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Definitions:

Midsagittal

Anatomical term that refers to the plane that runs lengthwise down the midline of the body, dividing it into equal left and right halves.

Sagittal

Relating to or denoting an anatomical plane that divides the body into right and left parts.

Superior

Anatomical term meaning above or closer to the head; also called cranial.

Anatomical Direction

Refers to the terms used to describe the locations and orientations of structures in the body relative to other structures or locations.