Question

1 through 6 please and thank you

Problem--Accounts Receivable (4 points each. 24 points total) Mega Multilayered Manufacturing ("Mega") was formed in 2017, and its fiscal year end is December 31st For all of the questions below, assume that on average 10.0% of its accounts receivable and 1.0% of its net credit sales are uncollecti ble (bad debts). 2017 and 2018 On December 31, 2017, Mega had accounts receivable of $200,000, and net credit sales were $2,000,000 for the year then ended. What is the amount of bad debt expense for Fiscal Year Ended December 31, 2017 (put your answers on the Answer Sheets)? 1. Using the Percentage of Receivables Basis 2. Using the Percentage of Sales Basis $200,000 x 10%= $20,000 $2,000,000 x 1% = $20,000 On December 31, 2018 the company had accounts receivable of $400,000, a credit balance in the allowance for doubtful accounts of $20,000, and net credit sales were $4,000,000 for the year then ended. What is the amount of bad debt expense for Fiscal Year Ended December 31, 2018? 3. Using the Percentage of Receivables Basis 4. Using the Percentage of Sales Basis ($400,000 x 10%) - 20,000 20,000 4,000,000 x 1% 40,000 2019 and 2020 The fact pattern is as follows: (1) Allowance for Doubtful Accounts balance as of December 31, 2019 was $40,000; (2) a customer who owed the company $6,000 declared bankruptcy during 2020 and the account was written off; (3) On December 31, 2020 the company had accounts receivable of $600,000; and (4) net credit sales were $6,000,000 for the year 2020. What is the amount of bad debt expense for Fiscal Year Ended December 31, 2020? 5. Using the Percentage of Receivables Basis 600,000 x 10% - (40,000 6,000) 26,000 6. Using the Percentage of Sales Basis 6,000,000 x 1% = 60,000

need time as in to answer this or the time in the actual problem? thanks again

Answer 1

	% of Bad Debt
Accounts Receivables	10%
Net Credit Sales	1%
2017			Bad Debt Account
	Amount	% of Bad Debt	Opening	Addition	written off	Closing
Accounts Receivables	200000	10%	0	20000	0	20000
Net Credit Sales	2000000	1%	0	20000	0	20000
Total Bad Debt Expense				40000
2018			Bad Debt Account
	Amount	% of Bad Debt	Opening	Addition	written off	Closing
Accounts Receivables	400000	10%	20000	20000	0	40000
Net Credit Sales	4000000	1%	0	40000	0	40000
Total Bad Debt Expense				60000
2019			Bad Debt Account
	Amount	% of Bad Debt	Opening	Addition	written off	Closing
Accounts Receivables	400000	10%	40000	0	0	40000
Total Bad Debt Expense				0
2020			Bad Debt Account
	Amount	% of Bad Debt	Opening	Addition	written off	Closing
Accounts Receivables	600000	10%	40000	26000	6000	60000
Net Credit Sales	6000000	1%	0	60000	0	60000
Total Bad Debt Expense				86000