Intermediate Accounting: E7-11 At January 1, 2010, the credit balance in the Allowance

Intermediate Accounting
E7-11 Receivables-Bad Debts
At January 1, 2010, the credit balance in the Allowance for Doubtful Accounts of the Master Company was $400.000 for 2010, the provision for doubtful accounts is based on a percentage of net sales.
Net sales for 2010 were $50.000.000.
Based on the latest available factsthe 2010 provision for doubtful accounts is estimated to be 0.7%of net sales.
During 2010, uncollectable receivables amounting to $410,000 were written off against the allowance for doubtful accounts.

Prepare a schedule computing the balance in Master’s Allowance for Doubtful Accounts at December 31, 2010. Show supporting computations in good form.
Powered by