Georgia Company reported accounts receivable of $16.5 million at the end of its 2012 fiscal
year. This amount was net of an allowance for doubtful accounts of $1,800,000. During 2013,
Georgia sold $56.5 million of merchandise on credit. It collected $57.9 million from customers.
Accounts valued at $1,980,000 were written off as uncollectible during 2013. Georgia’s
management estimates that 10% of the year-end (2013) Accounts Receivable balance-
will be uncollectible.
Note: Use minus (-) for negative numbers!
A. What amount will Georgia report for accounts receivable and the allowance for doubtful
accounts at the end of 2013? Show detailed computations in the space provided below.
B. What is the Doubtful Accounts Expense for 2013?
C. How will the accounts receivable and allowance accounts be presented on the balance sheet?
List below the accounts and amounts for the balance sheet section for accounts receivable.