The Accounts Receivable balance for River Corporation is $429,000 as of January 31, 2020. Beforecalculating and recording January 2020 Bad Debt Expense, the Allowance for Doubtful Accountshas a credit balance of $2,000. Credit sales for January 2020 are $3,900,000, and over the pastseveral years, 1% of credit sales have proven uncollectible. An aging of River Corporation'sAccounts Receivable results in a $39,050 estimate for the Allowance for Doubtful Accounts as ofJanuary 31, 2020. Part B: ANALYSIS OF RECEIVABLES METHODAssume that River Corporation instead uses the analysis of receivables method toestimate future uncollectible accounts.a. What adjusting entry does River make to record January 2020 Bad Debt Expense?b. What is the "Accounts Receivable, net" on River's January 31, 2020 Balance Sheet?c. What is "Bad Debt Expense" on River's January 2020 Income Statement?

Bad Debt Expense: Bad debts are accounts receivable that a company does not expect to collect and…

Part B: ANALYSIS OF RECEIVABLES METHOD Assume that River Corporation instead uses the analysis of receivables method to estimate future uncollectible accounts. a. What adjusting entry does River make to record January 2020 Bad Debt Expense? b. What is the "Accounts Receivable, net" on River's January 31, 2020 Balance Sheet? c. What is "Bad Debt Expense" on River's January 2020 Income Statement?

Part B: ANALYSIS OF RECEIVABLES METHOD Assume that River Corporation instead uses the analysis of receivables method to estimate future uncollectible accounts. a. What adjusting entry does River make to record January 2020 Bad Debt Expense? b. What is the "Accounts Receivable, net" on River's January 31, 2020 Balance Sheet? c. What is "Bad Debt Expense" on River's January 2020 Income Statement?

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 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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