at the beginning of 2024, the law firm of bronson and moore had total accounts receivable of $99,000. its…

at the beginning of 2024, the law firm of bronson and moore had total accounts receivable of $99,000. its net accounts receivable on that same date was $87,000. during the year, bronson and moore had the following activity related to accounts receivable:\na. service revenue of $705,000, all on account\nb. collections on account, $718,000\nthe firm uses the percent - of - sales method to estimate its bad debt expense and estimates that 1% of its sales will be uncollectible.\nrequirement 1. what is bronson and moores bad debt expense for the year?\nbad debt expense for the year = $ 7,050\nrequirement 2. what are the ending balances of accounts receivable and allowance for bad debts on december 31, 2024?\naccounts receivable =\nallowance for bad debts =

at the beginning of 2024, the law firm of bronson and moore had total accounts receivable of $99,000. its net accounts receivable on that same date was $87,000. during the year, bronson and moore had the following activity related to accounts receivable:\na. service revenue of $705,000, all on account\nb. collections on account, $718,000\nthe firm uses the percent - of - sales method to estimate its bad debt expense and estimates that 1% of its sales will be uncollectible.\nrequirement 1. what is bronson and moores bad debt expense for the year?\nbad debt expense for the year = $ 7,050\nrequirement 2. what are the ending balances of accounts receivable and allowance for bad debts on december 31, 2024?\naccounts receivable =\nallowance for bad debts =

Answer

Explanation:

Step1: Calculate ending accounts receivable

Beginning accounts receivable is $99,000. Service revenue on - account is $705,000 and collections on - account is $718,000. $99000 + 705000-718000$

Step2: Calculate allowance for bad debts

Bad - debt expense is 1% of sales. Sales are $705,000. Beginning net accounts receivable is $87,000 and beginning total accounts receivable is $99,000, so beginning allowance for bad debts is $99000 - 87000=12000$. Bad - debt expense is $705000\times0.01 = 7050$. $12000 + 7050$

Answer:

Accounts Receivable = $86,000 Allowance for Bad Debts = $19,050