Accounts receivable $1,050,000allowance (90,000)cash realizable value $960,000during 2007 sales on account were $290,000 and collections on account were $172,000. also during 2007 the company wrote off $16,000 in uncollectible accounts. an analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $108,000.52. bad debts expense for 2007 isa. $ 34,000b. $ 18,000c. $108,000d. $ 2,000

a. $ 34,000

Explanation:

The entry when the company wrote off uncollectible accounts:

Debit Allowance for Doubtful Accounts $16,000

Credit Uncollectible accounts $16,000

At the end of 2007, Allowance for Doubtful Accounts before adjusting trial balance: $90,000-$16,000 = $74,000

The company estimates bad debts based on outstanding receivable accounts. So, the amount of Bad debts expense for 2007 should be:

$108,000 - $74,000 = $34,000

The entry will be record:

Debit Bad debts expense $34,000

Credit Allowance for Doubtful Accounts $34,000

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answer; i believe both technician (a) and (b) are correct; /// good luck