1. The preparation of balance sheet is shown below:-
2. $8,400
Explanation:
1 Balance sheet
December 31, 2019
Assets Amount
Current assets
Accounts receivables $191,800
Allowance for uncollectible accounts ($12,800)
Net accounts receivables $179,000
Working note:-
Net accounts receivables = $179,000
Gross accounts receivables = $191,800
Allowance for uncollectible accounts, December 31, 2019 = Gross accounts receivables - Net accounts receivables
= $191,800 - $179,000
= $12,800
2. Bad debt expense = Allowance for uncollectible accounts, December 31, 2019 - (Allowance for uncollectible accounts, January 1, 2019 - Uncollectible accounts written off during 2019)
The statement states that -17 is greater than -20. This is true. By definition of the rule of negatives, the larger the number attached to the negative, the smaller the number is.
1. The preparation of balance sheet is shown below:-
2. $8,400
Explanation:
1 Balance sheet
December 31, 2019
Assets Amount
Current assets
Accounts receivables $191,800
Allowance for uncollectible accounts ($12,800)
Net accounts receivables $179,000
Working note:-
Net accounts receivables = $179,000
Gross accounts receivables = $191,800
Allowance for uncollectible accounts, December 31, 2019 = Gross accounts receivables - Net accounts receivables
= $191,800 - $179,000
= $12,800
2. Bad debt expense = Allowance for uncollectible accounts, December 31, 2019 - (Allowance for uncollectible accounts, January 1, 2019 - Uncollectible accounts written off during 2019)