Analyzing account balances for a company using the allowance method of accounting for uncollectible accounts
The following account balances come from the records of Springfield Company.
|
Beginning Balance |
Ending Balance |
|
|
Accounts receivable |
$4,000 |
$4,500 |
|
Allowance for doubtful accounts |
550 |
600 |
During the accounting period, Springfield recorded $32,000 of service revenue on account. The company also wrote off a $300 account receivable.
Required
a. Determine the amount of cash collected from receivables.
b. Determine the amount of uncollectible accounts expense recognized during the period.