• Aardvark Company sells merchandise only on credit. For the year ended December 31, 2019, the following data are

Question

• Aardvark Company sells merchandise only on credit. For the year ended December 31, 2019, the following data are available: Sales (all on credit) $1,200,000 Accounts Receivable, January 1, 2019 225,000 Allowance for doubtful accounts, January 1, 2019 (credit) 15,000 Cash collections during 2019 1,050,000 Accounts written off as uncollected (default) during 2019- 10,000 ·A) Determine the balance of Accounts Receivable at December 31, 2019. B) Assume that the company estimates bad debts at 2% of credit sales. What amount will the company record as bad debt expense for 2019? .) What journal entry would Aardvark prepare to record bad debt expense for 2019 (related to part B)? -

Help In Homework · Accepted Answer

A) Accounts Receivable BB 225,000 Cash 1,050,000 Sales 1,200,000 written off 10,000 End bal 365,000 Bal of A/R at December 31,2019 365,000 answer B) Estimated bad debts 1,200,000*2% 24000 Answer C) Date Account Titles and Explanation Debit Credit 12/31/2019 Bad debts expense 24000 Allowance for doubtful accounts 24000

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• Aardvark Company sells merchandise only on credit

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A)	Accounts Receivable
	BB	225,000	Cash	1,050,000
	Sales	1,200,000	written off	10,000

	End bal	365,000


	Bal of A/R at December 31,2019			365,000	answer



B)	Estimated bad debts
	1,200,000*2%
	24000	Answer



C)	Date	Account Titles and Explanation				Debit	Credit

	12/31/2019	Bad debts expense				24000
		Allowance for doubtful accounts					24000