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
Julie is eligible for the following amounts in child and dependent care credits based on different scenarios referred to below: - In the first case, she spent $2,000 on dependent care, and her qualified expenses amount to $3,000, with an earned income of $50,000. Thus, the eligible expenses for the credit are capped at $2,000 (the lowest of a, b, and c), granting her a credit rate of 20% (since AGI exceeds $43,000), totaling $400. - In the second scenario, Julie spent $5,000, where the qualifying expenses remain $3,000, resulting in a credit of $400 calculated similarly as before. - In the third case, spending $4,000 with an income of $25,000 results in a credit of $900 (as the rate is 30% with a qualifying expense of $3,000). - The fourth case of $2,000 spent and an income of $14,000 leads to a credit of $700 (as the percentage is 35%). - Lastly, a $4,000 expenditure under an income comprising $2,000 salary and $12,000 unearned results in a credit of $700 as well.
