Question

RCES Problem 7-2 CALCULATOR PRIN Presented below are a series of unrelated situations. Answer the questions relating to each of the five independent situations as requested. 1. Blue Company's unadjusted trial balance at December 31, 2017, included the following accounts. Debit Credit udy Accounts receivable $50,500 Allowance for doubtful accounts $5,670 Net sales $1,255,000 Blue 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 Kingbird Corp. accounts receivable at December 31, 2017, disclosed the following. Amounts estimated to be uncollectible $ 182,490 Accounts receivable 1,776,700 Allowance for doubtful accounts (per books) 127,430 What is the net realizable value of Kingbird's receivables at December 31, 2017? The net realizable value 24 3. Oriole Co. provides for doubtful accounts based on 3% of gross accounts receivable, The following data are available for 2017. $3,298,300 Credit sales during 2017 58,990 Bad debt expense 16,550 Allowance for doubtful accounts 1/1/17 7,280 Collection of accounts written off in prior years (customer credit was reestablished) 28,560 Customer accounts written off as uncollectible during 2017 What is the balance in Allowance for Doubtful Accounts at December 31, 2017?

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Answer 1
Blue company	Amount $
Accounts Receivable	50,500.00
Uncollectible %	5.00%
Allowance for uncollectible should be	2,525.00
Add: debit balance of Allowance for uncollectible	5,670.00
Bad Debts Expense for 2017	8,195.00
Answer 2
Kingbird corp.	Amount $
Accounts Receivable	1,776,700.00
Less: Accounts estimated to be uncollectable	182,490.00
Net realizable value of Accounts Receivable for 2017	1,594,210.00
Answer 3
Oriole company	Amount $
Allowance for doubtful accounts- opening	16,550.00
Add: Bad debt expense	58,990.00
Add: Customer account recovered	7,280.00
Less: Customer account written off	28,560.00
Allowance for doubtful accounts- closing	54,260.00
Answer 4
Waterway Inc.	Amount $
Accounts Receivable net off Allowance for doubtful accounts	925,900.00
Add: Bad debt expense	86,750.00
Accounts Receivable before deducting Allowance for doubtful accounts	1,012,650.00
Answer 5
Wildhorse's Inc.	Amount $
Accounts Receivable	305,200.00
Uncollectible %	3.00%
Allowance for uncollectible should be	9,156.00
Add: debit balance of Allowance for uncollectible	12,620.00
Bad Debts Expense for 2017	21,776.00