The following are a series of unrelated situations. 1. Halen Company’s unadjusted trial balance at December 31, 2017, included the following accounts.
| Debit \( | Credit \) |
Accounts receivables | \(53,000 | |
Allowance for doubtful accounts | 4,000 | |
Net sales | | \)1,200,000 |
Halen Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2017.
2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2017, disclosed the following.
Amounts estimated to be uncollectible | \(180,000 |
Accounts receivables | 1,750,000 |
Allowance for doubtful accounts (per books) | 125,000 |
What is the net realizable value of Stuart’s receivables at December 31, 2017?
3. Shore Co. provides for doubtful accounts based on 4% of gross accounts receivable, The following data are available for 2017.
Credit sales during 2017 | \)4,400,000 |
Bad debt expenses | 57,000 |
Allowance for doubtful accounts 1/1/17 | 17,000 |
Collection of accounts written off in prior years (Customer credit was re-established) | 8,000 |
Customer accounts written off as uncollectible during 2017 | 30,000 |
What is the balance in Allowance for Doubtful Accounts at December 31, 2017?
4. At the end of its first year of operations, December 31, 2017, Darden Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts | \(950,000 |
Customer accounts written off as uncollectible during 2017 | 24,000 |
Bad debt expense for 2017 | 84,000 |
What should be the balance in accounts receivable at December 31, 2017, before subtracting the allowance for doubtful accounts?
5. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2017.
| Debit | Credit |
Net credit sales | | \)750,000 |
Allowance for doubtful accounts | $14,000 | |
Accounts receivables | 310,000 | |
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2017.
Instructions
Answer the questions relating to each of the five independent situations as requested.
