Question

Potato Company began the period with an accounts receivable balance of $2,562 and a balance in the allowance for doubtful accounts of $393 The following transactions occurred in Potato Company a. During the period, customer balances are written off in the amount of $568 b. At the end of the period, bad debt expense is estimated to be $953. What is the Net Accounts receivable after these transactions

Answer 1

Answer:

The Net Accounts Receivable after all these transaction is $778

Explanation:

                            Potato Company

       Allowances for doubtful account

Beginning balance                $393

Less: Account written off      $568

Total balance                          $175

Bad Debt expense                 $953

Less: Remaining balance       $175

Net Accounts Receivable     $778