the following information relates jaya bhd s accounts receivable iunoo beginning balance 500 hmn

1. First, we need to calculate the bad debts expense. The bad debts expense is the amount of rec

The following information relates jaya bhd s accounts...

The following information relates to Jaya Bhd's accounts receivable: - Beginning balance: $500 - Allowance for doubtful debts: $150,000 - Credit sales: $1,600 - Written-off receivables: $145,000 - Cash receipts from customers will equal 10% of year-end estimated bad debts. At the end of the period, the company's accounts receivable balance is required. Required: 1. Calculate the bad debts expense for doubtful debts. 2. Calculate the ending balance of the allowance.

Transcript

00:02 Hi, in this video we're going to compute for our bidet expense and the second requirement is to compute for the ending balance of our allowance for doubtful debts or doubtful accounts.

00:14 So first things first let us compute for the ending balance of our accounts receivable since that will be the basis of our bidet expense, of estimating our bidet expense.

00:27 So i usually prefer doing the t account method because it's more convenient for me, but it's up to you how you do it.

00:37 So on the debit side, this is the debit side and this is your credit since.

00:46 So the normal balance of accounts receivable is debit.

00:49 So the beginning balance of your accounts receivable, you put it on a debit side and that's $30 ,000.

00:55 And you have a credit sales in particular of 150 ,000.

01:02 So you put it on your debit side since we debit our accounts receivable when we have a credit sales.

01:12 On the credit, on the other hand, we have one six write off or written off receivables.

01:20 So it's a credit because you credit your accounts receivable every time there's a write -off.

01:26 And that's one six.

01:30 And we have a cash receipts from customers or you have collected.

01:36 You have collections from your clients or customers in the amount of 145 ,000.

01:44 So let us compute for your ending accounts receivable.

01:48 That's 30 ,000 plus 150 ,000, less 16 and less 145.

01:54 And so we get 33 ,400...

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