Question

A series of unrelated situations follow:
1. Atlantic Inc.'s unadjusted trial balance at December 31, 2014, included the following accounts:
2. An analysis and aging of Central Corp.’s accounts receivable at December 31, 2014, disclosed the following:
3. Western Co. provides for doubtful accounts based on 4.5% of credit sales. The following data are available for 2014:
4. At the end of its first year of operations, on December 31, 2014, Pacific Inc. reported the following information:
5. The following accounts were taken from Northern Inc.’s unadjusted trial balance at December 31, 2014:
Instructions
(a) For situation 1, Atlantic estimates its bad debt expense to be 1.5% of net sales. Determine its bad debt expense for 2014.
(b) For situation 2, what is the net realizable value of Central Corp.'s receivables at December 31, 20 14?
(c) For situation 3, what is the balance in Allowance for Doubtful Accounts at December 31, 2014?
(d) For situation 4, what is the balance in accounts receivable at December 31, 2014, before subtracting the allowance for doubtful accounts?
(e) For situation 5, if doubtful accounts are 7% of accounts receivable, what is the bad debt expense amount to be reported for 2014?


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  • CreatedSeptember 18, 2015
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