Black corporation had a 1/1/20 balance in the allowance for doubtful accounts of $21,000. during 2020, it wrote off $15,120 of accounts and collected $4,410 on accounts previously written off. the balance in accounts receivable was $420,000 at 1/1 and $504,000 at 12/31. at 12/31/20, black estimates that 5% of accounts receivable will prove to be uncollectible. what should black report as its allowance for doubtful accounts at 12/31/20?

Black report as its Allowance for Doubtful Accounts at 12/31/20 of $25,200

Explanation:

The computation of the allowance for the doubtful account is shown below:

= Ending account receivable balance × estimated percentage

= $504,000 × 5%

= $25,200

To find out the allowance for a doubtful account we simply calculate the estimated amount based on the ending balance of the accounts receivable and the given percentage.

All other values are not relevant. Hence, ignored it

b. condominum i think

engaging in financial planning?

just took my test