1. Halen Company\'s unadjusted trail balance at December 31,2010 included the fo

ID: 2371251 • Letter: 1

Question

1. Halen Company's unadjusted trail balance at December 31,2010 included the following accounts

Allowance for Doubtfull Accounts Debit 4,000.

Net Sales Credit 1,200,000.

Halen company estimates its bad debt expense to be 1 1/2% of net sales. Determine its bad debt expense for 2010?

2. An analysis and aging of Stuart's recivables at December 31,2010

Amounts estimated to be uncollectible $180,000.

Accounts receivable 1,750,000.

Allowance for doubtful accounts(per Book) 125,000.

What is the net realizable value of Stuart's receivable at December 31,2010?

3. Shore Co. provides for doubtful accounts based on 3% of credit sales. The folowing data are available for 2010

Credit sales during 2010 2,400,000.

Allowance for doubtful accounts 1/1/10 17,000.

Collection of accounts written off in prior years

customer credit was reestablished 8,000.

Customer Accounts written off as uncollectible during 2010 30,000.

What is the blance in the Allowance for Doubtful Accounts at December 31,2010

4. At the end of its first year of operations, December 31,2010 Darden Inc. reported the following information

Accounts receivable, net of allowance for doubtful accounts $950,000.

Customer Accounts written off as uncollectible during 2010 24,000.

Bad debt expense for 2010 84,000.

What should be the balance in accounts receivable at December 31, 2010 , before subtracting the allowance for doubtful accts?

5. The following accounts were taken from Bullock Inc.'s trial balance at December 31,2010

Net Credit sales Credit $750,000

Allowance for doubtful accounts Debit $14,000.

Accounts receivable Debit 310,000.

If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2010

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