Question

CAN SOMEONE PLEASE HELP ME WITH THESE ASAP

You have the following information for BEST SALES for 2011 and 2010:

	2011	2010
Sales	$5,000,000	$800,000
Bad Debts Expense	100,000	40,000
Accounts Receivable (gross)	$400,000	$200,000	(Adjusted Balances at December 31)
Allowance for Bad Debts	10,000	20,000	(Adjusted Balances at December 31

Using the following information above answer these questons:

1.

BEST SALES 2011 balance sheet information shows that:

		Gross receivables as of the balance sheet date are $500,000.
		Net realizable value of receivables as of the balance sheet date is $400,000.
		Net realizable value of receivables as of the balance sheet date is $410,000.
		Net realizable value of receivables as of the balance sheet date is $390,000.
		None of the above.

2.

On the basis of the information provided for BEST SALES:

		Sales for 2011 were lower than those for 2010.
		The net realizable value of accounts receivable as of the year-end decreased from 2010 to 2011.
		For 2011, BEST SALES recorded bad debts expense totaling $100,000.
		Accounts receivable written off in 2011 totaled $10,000.
		None of the above.

3.

On the basis of the information provided for BEST SALES:

		Accounts receivable written off in 2011 totaled $10,000. .
		Accounts receivable written off in 2011 totaled $100,000.
		Accounts receivable written off in 2011 totaled $110,000.
		Accounts receivable written off in 2011 totaled $120,000.
		None of the above.

4.

On the basis of the information provided for BEST SALES:

		Accounts receivable written off in 2011 totaled $10,000. .
		Accounts receivable written off in 2011 totaled $100,000.
		Accounts receivable written off in 2011 totaled $110,000.
		Accounts receivable written off in 2011 totaled $120,000.
		None of the above.

5.

On the basis of the information provided for BEST SALES:

		Accounts receivable written off in 2011 totaled $10,000. .
		Accounts receivable written off in 2011 totaled $100,000.
		Accounts receivable written off in 2011 totaled $110,000.
		Accounts receivable written off in 2011 totaled $120,000.
		None of the above.

Answer 1

Answer to Question 1:

Net Realizable Value = Accounts Receivable - Allowance for Bad Debts
Net Realizable Value = $400,000 - $10,000
Net Realizable Value = $390,000

Answer to Question 2:

For 2011, BEST SALES recorded bad debts expense totalling $100,000.

Answer to Question 3:

Allowance for Bad Debts, 2011 = Allowance for Bad Debts, 2010 + Bad Debt Expense, 2011 - Accounts Receivable Written Off
$10,000 = $20,000 + $100,000 - Accounts Receivable Written Off
Accounts Receivable Written Off = $110,000