In 2020, the Kenan Co. had net credit sales of $375,000. On January 1, 2020 Allowance for Doubtful Accounts had a credit balance of $9,000. During 2020. $18,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $100,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2020?

In 2020, the Kenan Co. had net credit sales of $375,000. On January 1, 2020 Allowance for Doubtful Accounts had a credit balance of $9,000. During 2020. $18,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $100,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2020?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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