Assume that at the beginning of period the balance account receivable and allowance for doubt full where 110000 and 20000 respectively credit sales and collection of account receivable during the period of Birr 100,000 and 80,000 respectively. During the period account receivable of Birr 1200 has been written of based on past expressed 1%of credit sales to be uncollectable hint(use allowance method) Required A,how much is the balance of account receivable at the end period B,find bad debt expense for the period C,the balance of allowance of doubt fully at the period or AFDA D,what is relaliazble value

2025-03-17by@edeledelina2-vjnJh&@ChatGPT.Model: GPT-3.5
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Assume that at the beginning of period the balance account receivable and allowance for doubt full where 110000 and 20000 respectively credit sales and collection of account receivable during the period of Birr 100,000 and 80,000 respectively. During the period account receivable of Birr 1200 has been written of based on past expressed 1%of credit sales to be uncollectable hint(use allowance method)
Required
A,how much is the balance of account receivable at the end period
B,find bad debt expense for the period
C,the balance of allowance of doubt fully at the period or AFDA
D,what is relaliazble value

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A.
Beginning balance of accounts receivable = 110,000
Credit sales during the period = 100,000
Collections of accounts receivable during the period = 80,000
Amount written off as uncollectible = 1,200

Ending balance of accounts receivable = Beginning balance + Credit sales - Collections - Amount written off
Ending balance of accounts receivable = 110,000 + 100,000 - 80,000 - 1,200
Ending balance of accounts receivable = 128,800

Therefore, the balance of accounts receivable at the end of the period is Birr 128,800.

B.
Bad debt expense for the period is the amount of the accounts receivable that is estimated to be uncollectible. In this case, the amount written off based on past experience is 1% of credit sales.

Bad debt expense = 1% of credit sales
Bad debt expense = 0.01 * 100,000
Bad debt expense = 1,000

Therefore, the bad debt expense for the period is Birr 1,000.

C.
Beginning balance of allowance for doubtful accounts (AFDA) = 20,000
Bad debt expense for the period = 1,000

Ending balance of AFDA = Beginning balance + Bad debt expense
Ending balance of AFDA = 20,000 + 1,000
Ending balance of AFDA = 21,000

Therefore, the balance of the allowance for doubtful accounts at the end of the period is Birr 21,000.

D.
The realizable value is the amount that is expected to be collected from the accounts receivable. It is calculated as:

Realizable value = Ending balance of accounts receivable - Ending balance of AFDA
Realizable value = 128,800 - 21,000
Realizable value = 107,800

Therefore, the realizable value is Birr 107,800.