question archive Dickey Company prepared an aging of its accounts receivable at Decently 31, 2005, and determined that the net realizable value of the receivable at that date is Rp
Dickey Company prepared an aging of its accounts receivable at Decently 31, 2005, and determined that the net realizable value of the receivable at that date is Rp
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Dickey Company prepared an aging of its accounts receivable at Decently 31, 2005, and determined that the net realizable value of the receivable at that date is Rp. 10,000,000. Additional information is available as follows: DE Accounts receivable, 12/31/04 9,600,000 Accounts receivable, 12/31/05 10,800,000 Allowance for doubtful accounts, 12/31/04 - credit balance 1,200,000 Accounts written off as uncollectible O during 2005 1,000,000 P Dickey's bad expense for the year ended December 31, 2005, is a. 600,000 b. 800,000 T c. 1,000,000 d. 1,400,000 (V
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c. 1,000,000
A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems.
Uncollectible accounts expense. Uncollectible accounts expense is the charge made to the books when a customer defaults on a payment. This expense can be recognized when it is certain that a customer will not pay. ... Uncollectible accounts expense is also known as bad debt expense.
Therefore, the balance for uncollectible at December 31, 2005 is the same as the bad debt which is 1,000,000
