Asked Dec 16, 2019

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $673,400 and Allowance for Doubtful Accounts has a balance of $11,900. Describe how the accounts receivable and the allowance for doubtful accounts are reported on the balance sheet.


Expert Answer

Step 1

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for bad debts account.

Step 2

Describe the way in which accounts receivable and allowance for doubtful accounts are reported on the balance sheet:


Accounts receivable would be reported under the asset section of the balance sheet. A...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in



Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Pl...

A: First of all, we need to note that fixed cost is immaterial in case of finding the best model as thi...


Q: What is an enterprise resource planning (ERP) system? What are the advantages and disadvantages of u...

A: Click to see the answer


Q: The outputs of a computerized accounting information system are called Reports. Software. Processin...

A: Accounting information systems: Accounting information system is a system that collects, stores, pro...


Q: During 20Y5, the accountant discovered that the physical inventory at the end of 20Y4 had been under...

A: Click to see the answer


Q: Which one of the following is not an accounting problem (issue) associated with accounts receivable?...

A: Account receivable is the account of current assets of the firm. These represent the account of all ...


Q: Flapjack Corporation had 8,000 actual direct labor hours at an actual rate of $12.12 per hour. Origi...

A: Determine standard hours for actual production.


Q: December 31, 2011 Cash  137,000 Bonds payable (due 2050)  100,000 Accounts payable  22,000 ...

A: Prepare income statement and statement of retained earnings: 


Q: Knott Inc. has a petty cash fund of $750. (a) Since the petty cash fund is only $750, should Knott I...

A: Petty cash fund: It is a fund established to pay insignificant amounts like postage, office supplies...


Q: Beeler Furniture Company deposits all cash receipts cach Wednesday and Friday in a night depository ...

A: 1. Prepare the bank reconciliation statement of Company BF as at July 30, 20Y2.