Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $665,000. The

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Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $665,000. The company uses the allowance method to account for uncollectible accounts. At the beginning of 2021, the allowance for uncollectible accounts had a credit balance of $40,000, and during the year, $25,000 in receivables were written off as uncollectible. Additionally, in December, the company received $2,000 in cash from a customer whose account had previously been written off. The company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year.

Anonymous · Accepted Answer

Bad debt expenses is $82,750Explanation:Recording the write off receivables Date  Account Titles and Explanation                 Debit       Credit           Allowances for uncollectible accounts   $25,000                Accounts receivables                                              $25,000            (To write off an uncollectible amount)Recording the reinstatement of an account previously written off Date  Account Titles and Explanation                 Debit       Credit           Account receivables                                  $2,000                  Allowances for uncollectible accounts               $2,000           (To reinstatement of an account previously written off)Recording collection of account previously written offDate  Account Titles and Explanation                 Debit       Credit           Cash                                                               $2,000                            Account receivables                                  $2,000           (To record the cash received)Recording bad debt expenses for the yearDate  Account Titles and Explanation                 Debit       Credit           Bad debt Expenses                                   $82,750                 Allowances for doubtful accounts                        $82,750            (To record estimated bad debts)WorkingsParticulars                        AmountBeginning balance                    $40,000Less: Receivables write off       $25,000Add: Collection of receivables  $2,000         previously written off                                                      $17,000Less: Required allowances         $99,750 ($665,000*15%)                   Bad debt expenses                     $82,750Thus, the bad debt expenses is $82,750

Anonymous · Answer

Answer: the correct answer is economics is a game without winners or losers.explanation: unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

Anonymous · Answer

The answer is c hope this

Dr. Rolando Macejkovic

Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $665,000. The

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