At the end of 2019, ABC has a balance in accounts receivable of $250,500. Of this amount, it is estimated that $4,500 would prove uncollectible. A reserve for tax purposes is deducted for this amount. During 2020, $7,500 of accounts receivable are written off. At the end of 2020, accounts receivable total $333,200, with $8,100 of this amount expected to be uncollectible. Required: Calculate the net impact on the business income of ABC given the above information with respect to bad debts?
At the end of 2019, ABC has a balance in accounts receivable of $250,500. Of this amount, it is estimated that $4,500 would prove uncollectible. A reserve for tax purposes is deducted for this amount. During 2020, $7,500 of accounts receivable are written off. At the end of 2020, accounts receivable total $333,200, with $8,100 of this amount expected to be uncollectible. Required: Calculate the net impact on the business income of ABC given the above information with respect to bad debts?
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 8DQ
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At the end of 2019, ABC has a balance in
Required: Calculate the net impact on the business income of ABC given the above information with respect to
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