Reference no: EM132317519
Question
Presented below are a series of unrelated situations.
Answer the questions relating to each of the five independent situations as requested.
1. Sweet Company's unadjusted trial balance at December 31, 2017, included the following accounts.
Debit Credit
Accounts receivable $54,100
Allowance for doubtful accounts $7,320
Net sales $1,279,700
Sweet Company estimates uncollectible accounts to be 5% of gross accounts receivable. Determine its bad debt expense for 2017.
Bad debt expense for 2017
2. An analysis and aging of Pharoah Corp. accounts receivable at December 31, 2017, disclosed the following.
Amounts estimated to be uncollectible $ 183,680
Accounts receivable 1,793,800
Allowance for doubtful accounts (per books) 128,620
What is the net realizable value of Pharoah's receivables at December 31, 2017?
The net realizable value
3. Novak Co. provides for doubtful accounts based on 4% of gross accounts receivable, The following data are available for 2017.
Credit sales during 2017 $4,244,100
Bad debt expense 57,800
Allowance for doubtful accounts 1/1/17 16,450
Collection of accounts written off in prior years (customer credit was reestablished) 7,250
Customer accounts written off as uncollectible during 2017 32,230
What is the balance in Allowance for Doubtful Accounts at December 31, 2017?
The balance in Allowance for Doubtful Accounts
4. At the end of its first year of operations, December 31, 2017, Splish Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts $921,900
Customer accounts written off as uncollectible during 201722,440
Bad debt expense for 201780,610
What should be the balance in accounts receivable at December 31, 2017, before subtracting the allowance for doubtful accounts?
Accounts receivable, before deducting allowance for doubtful accounts
5. The following accounts were taken from Blossom Inc.'s trial balance at December 31, 2017.
Debit Credit
Net credit sales $734,900
Allowance for doubtful accounts $12,740
Accounts receivable 301,400
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2017.
The bad debt expense, as adjusted