Thatcher Company Had a January 1, Credit Balance in Its

question 114

Essay

Thatcher Company had a January 1, credit balance in its Allowance for Doubtful Accounts of
$4,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
Apr 15 Bean's account receivable of $2,700 was deemed uncollectible.
July 1 Cho paid the full amount of a previously written-off account receivable. This receivable of
$1,300 had been written off in the prior year.
Dec 31 Bad debts expense of $4,500 was recorded.
What amount should appear in the allowance for doubtful accounts in the December 31, balance sheet for the current year?

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Definitions:

Consumers

Individuals or groups who purchase products or services for personal use rather than for manufacturing or resale.

Evaluate

The act of judging the value or condition of something in a careful and thoughtful way, typically for decision-making purposes.

Intangibility

A characteristic of services that cannot be physically touched or seen before the purchase decision, making them difficult to evaluate beforehand.

Massage

A therapeutic technique that involves manipulating the body's muscles and tissues to relieve pain, reduce stress, and improve overall wellness.