Question

During the year, Kiner Company made an entry to write off a $32000 uncollectible account. Before this entry was made, the balance in accounts receivable was $400000 and the balance in the allowance account was $36000. The accounts receivable amount expected to be collected after the write-off entry was

Answer 1

The accounts receivable amount expected to be collected after the write-off entry is $368,000.

Step-by-step explanation:

To determine the accounts receivable amount expected to be collected after the write-off entry, we need to subtract the amount of the uncollectible account from the balance in accounts receivable before the entry was made. Before the write-off entry, the balance in accounts receivable was $400,000, and the uncollectible account was $32,000. Therefore, the accounts receivable amount expected to be collected after the write-off entry is $400,000 - $32,000 = $368,000.

Answer 2

Kiner Company's write-off of a $32,000 uncollectible account affects the allowance for doubtful accounts but not the total accounts receivable. The expected collections on accounts receivable remain at $400,000 after the write-off, as the $32,000 is deducted from the allowance account, reducing its balance to $4,000.

Step-by-step explanation:

The subject of this question pertains to the accounting treatment for uncollectible accounts within a business context. When Kiner Company writes off an uncollectible account, it impacts both the accounts receivable and the allowance for doubtful accounts.

Before the write-off, the accounts receivable had a balance of $400,000. The write-off of $32,000 does not change the total amount of accounts receivable because the write-off is made against the allowance account, not directly against accounts receivable. The allowance account, which had a balance of $36,000 before the write-off, is used to absorb the loss from the uncollectible account. The actual expected collections on accounts receivable remain the same.

After the write-off, the balance in the allowance account would be $36,000 - $32,000 = $4,000. The amount expected to be collected remains $400,000 because write-offs against the allowance account do not affect the accounts receivable balance.