Question

QUESTION 4 Domino Company ages its accounts receivable to estimate bad debes expense Domino began Year 2 wich balances in Accounts Receivable and Allowance for Doubtful Accounts of $40,170 and 53080, respectively. During Year the company wrote off 52420 in uncollecoble accounts. In preparation for the companys estimate of bad debes expense for Year 2, Domino prepared the following aging schedule: Number of Days Receivables aukely to be 0-30 What amount will be reported as bad debes expense on the Year 2 income statement? 54136 53476 52420 51056 QUESTIONS Calistoga Produce estimates bad debt expense at 0.20% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $482.000 and 51600 respectively, at December 31, 2017. During 2018. Calistoga's credit sales and collections were 5332,000 and $319,000, respectively, and $1880 in accounts receivable were written off Calistoga's 2018 bad debt expense is: $1700 $664 $638 5484 QUESTION 6 bad debts Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubul Accounts of 586,000 and $4800, respectively. During Year 2 Allegheny wrote of $9000 of Uncollectible Accounts Using the percent of receivables mechod, Allegheny estimates that the ending Allowance for Douboful Account balance should be 57200. What amount will Allegheny report as bad debts Expense on its Year 2 income Statement? 39000 52200 $11.400

Answer 1

4
Days past due	Amount	% uncollectible	Amount uncollectible
Current	58000	1%	580
0-30	23900	5%	1195
31-60	5560	10%	556
61-90	2620	25%	655
Over 90	2300	50%	1150
Total	92380		4136
Estimated uncollectibles	4136
Less: Current balance in Allowance account	660	=3080-2420
Bad debts expense	3476
Option B $3476 is correct
5
Credit sales	332000
X Estimated bad Debts expense	0.20%
Bad debts expense	664
Option B $664 is correct
6
Estimated uncollectibles	7200
Less: Current balance in Allowance account	-4200	=4800-9000
Bad debts expense	11400
Option D $11,400 is correct