Reference no: EM132589849

Question 1: 12/31/2019 At the end of the first year of operations, Yolanda Co. had $900,000 in sales and accounts receivable of $350,000. XYZ management estimated that 1.5% of sales will be uncollectible. Journalize the adjusting entry at year end.

Bad Debt Expense:

Allowance for Doubtful Accounts:

For the end of 2019, what is the company's net realizable value?

Question 2: 12/31/2020 During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolanda Co. had $1,000,000 in sales and accounts receivable of $400,000. XYZ management has estimated that 1.5% of sales will be uncollectible. For the end of 2020 after the adjusting entry for bad debts was journalized what is the balance of the following accounts:

Bad debt expense:

Allowance for Doubtful Accounts:

For the end of 2020 what is the company's net realizable value?