Suppose a new, rare metal was found that could provide electricity to a large number of households very inexpensively. Four firm

Response:

• 1. During this fiscal year, the total amount of bad debts that were written off was:

Allowance for Doubtful Accounts  

$ 147 Credit

$ 94 Credit

$ 58 Debit

$ 183 Credit Balance      

Dr Allowance for Uncollectible Accounts $ 58  

Cr Accounts Receivable Net $ 58  

2. Based on your answer to question (1), determine the cash collected from clients for this financial year.

Accounts Receivable  

$ 11,785    Debit  

$ 61,170    Debit  

$ 58         Credit  

$ 58,825 Credit  

$ 14,072  Debit Balance  

Explanation:

To ascertain the amount of debt written off during the ongoing year, take into account the balance from the previous year and factor in the total recorded for bad debts within the year. The difference between the total for the current year and these figures will indicate the written-off amount.

• In the current year, Hassell noted a bad debt expenditure of $94 with no recoveries reported.  

Dr Bad Debt Expense                                $ 94  

Cr Allowance for Uncollectible Accounts $ 94  

1. What was the total amount of bad debts written off in the current year?  

Allowance for Doubtful Accounts  

$ 147 Credit

$ 94 Credit

$ 58 Debit

$ 183 Credit Balance

Dr Allowance for Uncollectible Accounts $ 58

Cr Accounts Receivable Net                 $ 58

2. Using the answer from requirement (1), calculate the cash obtained from customers this year    

With previously calculated figures, you can calculate the total amount collected throughout the year. You repeat the process used earlier to figure out the amount; using the movements from the current year, deduce the total collected value.

Accounts Receivable  

$ 11,785    Debit  

$ 61,170    Debit  

$ 58         Credit  

$ 58,825 Credit  

$ 14,072   Debit Balance  

Dr Cash                                   $ 58.825

Cr Accounts Receivable Net $ 58.825