helpmepls!
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- Feb 18, 2017
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- 13
Company uses the allowance method for recording its expected credit losses. It estimates credit losses at 5% of credit sales which were $900,000 during the year. On December 31, the Accounts Receivable balance was $150,000 and the Allowance for Doubtful Accounts had a credit balance of $20,200 before adjustment.
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How do I calculate what the Allowance for Doubtful Accounts was [/FONT][FONT=Open Sans, Helvetica Neue, Helvetica, Arial, sans-serif]BEFORE[/FONT][FONT=Open Sans, Helvetica Neue, Helvetica, Arial, sans-serif] the adjustment?
I tried 20200 * 5% and then added it together. I also tried subtracting 20200 from 900k. I looked at book and videos for help but there are no questions similar and the book only gives a definition. I did the rest. thank you![/FONT]
[FONT=Open Sans, Helvetica Neue, Helvetica, Arial, sans-serif]
How do I calculate what the Allowance for Doubtful Accounts was [/FONT][FONT=Open Sans, Helvetica Neue, Helvetica, Arial, sans-serif]BEFORE[/FONT][FONT=Open Sans, Helvetica Neue, Helvetica, Arial, sans-serif] the adjustment?
I tried 20200 * 5% and then added it together. I also tried subtracting 20200 from 900k. I looked at book and videos for help but there are no questions similar and the book only gives a definition. I did the rest. thank you![/FONT]