Question

QUESTION 10 Aging of Receivables Problem: For Reggie Company you have the following data for accounts receivable at 12/31/Y9: Allowance Reguired 1.0 % 3.0 % 10.0 % Amount Age Category 0-30 days 31-80 days Over 80 days $200,000 100,000 10,000 Total $ 260,000 Reggie uses aging of receivables method to estimate bad debts. At 12/31/Y8 the after-adjustment balance in allowance for uncollectible accounts was $5,000 (credit). During Y9, Reggie wrote off accounts receivable in the amount of $8,000. Q10. Determine the amount of bad debt expense for Y9. O A $13,000 B. So,000 О с. s6,000 O D. $3,000

Answer 1

Q10.
Answer is B. 9000
Explanation:
Allowance for uncollectible accounts
Age	Amount	% unrealisable		Estimated allowance
0-30	200000	1%		2000
31-80	100000	3%		3000
Over 80	10000	10%		1000
		Estimated Allowance		6000
Beginning balance of allowance			5000
Less: Amount write off			-8000
BalanceDebit			3000
Required balance			6000
Bad debts expense			9000
Q11.
Answer is C. total Assets remain same.
Q12.
Answer is A. 1700
Explanation
	Units	CPU	MV	LCMV	Valuation
A	100	10	9	9	900
B	200	4	5	4	800
			Total Inventory		1700
Q13.
Answer is B. 200.
Explanation:
Cost of goods sold:
20 units @ 7		140
10 units @ 6		60
Cost of goods sold:		200