Question

1. Metlock Company's unadjusted trial balance at December 31, 2020, included the following accounts. Accounts receivable Allowance for doubtful accounts Net sales Debit $55,100 5,610 $1,229.500 Matlock Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2020 Bad debt expense for 2020 $ 2. An analysis and aging of Bonita Corp. accounts receivable at December 31, 2020, disclosed the following. Amounts estimated to be uncollectible Accounts receivable Allowance for doubtful accounts (per books) $184.260 1,795,700 127.610 What is the net amount expected to be collected of Bonita's receivables at Deceber 31, 2020? Net realizable value $ 3. Windsor Co provides for doubtful accounts based on 3% of gross accounts receivable. The following data are available for 2020 Credit sales during 2020 Bad debt expense Allowance for doubtful accounts 1/1/20 Collection of accounts written off in prior years (customer credit was reestablished) Customer accounts written off as uncollectible during 2020 $2.185,300 58.230 17,920 7,970 30,680 What is the balance in Allowance for Doubtful Accounts at December 31, 2020 Allowance for doubtful accounts 12/31/20 S

Answer 1

1) Bad debt expense = 55100*7%+5610 = 9467

2) Net realizable value = 1795700-184260 = 1611440

3) Allowance for doubtful accounts = 17920+7970-30680+58230 = 53440