Use the following information for the next question Followin

Use the following information for the next question: Following is selected information for Fred Company, AFTER year-end adjusting entries For vear ended December 31 Sales BadDebts Expense 2004 2003 $5,000,000 $4,500,000 110,000 120,000 As of December 31 Accounts Receivable (gross) Allowance for Bad Debts $350,000 $300,000 20,000 10,000 27. On the basis of the information provided for Fred Company, the Accounts Receivable written off in 2004 were: Use the following information for thenext 4 questions Royal Corp. had Accounts Receivable of $700,000 and an Allowance for Doubtful Accounts of $50,000 just before writing off an account receivable from Filo Company of $10,000 28. The net realizable value of the accounts receivable before the write-off were: 29. Gross Accounts Receivable after the write-off are 30. The balance in the Allowance for Doubtful Accounts after the write-offis 31. The net realizable value of the accounts receivable after the write-off are:

Solution

27.) opening bal. of allowance of bad debts = 20000

add: bad debts shown as exp in cur year = 10000

less: closing balance of allowance = (10000)

Accounts rec w/off = 20000

28) net realixable value of acts rec before w/off = 700000 - 50000 = 650000$

29) Gross act rec after w. off = 700000 - 10000 = 690000

30) bal of allowance actafter w/off = 50000 - 10000 = 40000

31) net realixable value of acts rec after w/off = 690000 - 40000 = 650000