marks People Window Help WileyPLUS x VQ Lab Practical 4 Ch 8

marks People Window Help WileyPLUS x VQ Lab Practical 4 (Ch, 8 & 9) Fla X Kaypee com/edugen/i ti/main.uni Return to Blackboard PLUS i Snatem.rhoncemnding, 1es Grace Period: 1 days left I Regis CALCULATOR PRINTER VERSION BACK NEXT SOURCES Problem 7-2 Presented below are a series of unrelated situations. Answer the questions relating to each of the five independent situations as requested 1. Pearl Company\'s unadjusted trial balance at December 31, 2017, included the following accounts Part Pat Level Debit Credit Accounts receivable $48,200 by Study Allowance for doubtful accounts $4,380 Net sales $1,253,200 Pearl Company estimates uncollectible accounts to be 8% of gross accounts receivable. Determine its bad debt expense for 2017. Bad debt expense for 2017 2. An analysis and aging of Martinez Corp. accounts receivable at December 31, 2017, disclosed the following Amounts estimated to be uncollectible Accounts receivable Allowance for doubtful accounts (per books) s 180,290 1,764,600 126,940 What is the net realizable value of Martinez\'s receivables at December 31, 2017 The net realizable value 3. Sandhil Co provides for doubtful accounts based on 2% of gross accounts receivable. The following data are available for 2017. Credit sales during 2017 Bad debt expense Allowance for doubtful accounts 1/1/17 Collection of accounts written off in prior years (customer credit was reestablished) 1,352,000 58,110 17,640 7,950 Show A PPTpptxB BIOL 100- Lab 1.docxBIOL 100-Healthy .L....docx .

Solution

Q1. Bad debt expense for 2017: $ 8236 Explanation: Accounts receivable (Gross): 48200 Bad debts expense 8% Required balance in Allowance at end 3856 Add: Debit balance in Allowance 4380 Bad debts expense 8236 Q2. The net realizable value is $ 1584,310 Explanation: Accounts receivable 1764600 Less: Allowance balance adjusted at end 180290 Net realizable value of Accounts receivable 1584310 Q3. The balance of Allowance for Doubtful account: $ 53980 Explanation: Allowancce balance in beginning 17640 Add: bad debts expense 58,110 Add: Account reinstated 7,950 less: Amount written off -29,720 Ending balance of Allowance 53,980 Q4. Accounts receivable before allowance: $ 1066,390 Explanation: Balance in Allowance account: bad debts expense 90520 Less: Amount wirtten off 24330 Balance in Allowance account: 66190 Accounts recievable (net) 1,000,200 Add: Allowance for Doubtful 66190 Accounts receivable (Gross) 1,066,390 Q5. The bad debts expense is : $ 22975 Explanation: Accounts receivable (Gross): 326500 Bad debts expense 3% Required balance in Allowance at end 9795 Add: Debit balance in Allowance 13180 Bad debts expense 22975