ACCOUNTING 1010 TEST IV CHAPTERS 8-11 Page 6 For each of the following scenarios

Question

ACCOUNTING 1010 TEST IV CHAPTERS 8-11 Page 6 For each of the following scenarios, indicate the Bad Debt Expense to be recorded in 2018, the balance in the Allowance for Doubtful Accounts account after adjustment at December 31, 2018, and the net realizable value of the Accounts Receivable as shown on the balance sheet as of December 31, 2018: 17. a. Tanner Company had net credit sales of $500,000 during 2018, and has an Accounts Receivable balance of $125,000 at December 31,2018. The Allowance for Doubtful Accounts has a debit balance of $6,000 before adjustment. Tanner estimates Bad Debt Expense at 1% of net credit sales. The year-end adjusting entry for bad debt expense for 2018 is The balance of the allowance for doubtful accounts after adjustment was: The net realizable value of A/R as shown on the balance sheet Dec. 31,2018 was: Anchor Inc. has a balance of $150.000 in Accounts Receivable at December 31, 2018. An analysis of those receivables shows $18,000 will probably not be collected. Before adjusting entries are prepared, the Allowance for Doubtful Accounts has a debit balance of $8,000. b. adjusting entry for bad debt expense for 2018 is: aulance of the allowance for doubtful accounts after adjustment was: The net realizable le Value of A/R as shown on the balance sheet Dec. 31, 2018 was

Explanation / Answer

Solution for 17 (a)

Bad Debt Expense for 2018 = $500000*1%=$5000 Allowance for Doubtful Accounts at Dec. 31 = $6000+$5000 = $11000 Net Realizable Value of A/R at Dec. 31, 2018 = $125000-11000=$114000

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