The following are a series of unrelated situations.
1. Halen Company€™s unadjusted trial balance at December 31, 2014, included the following accounts.

Halen Company estimates its bad debt expense to be 1½% of net sales. Determine its bad debt expense for 2014.

2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2014, disclosed the following.
Amounts estimated to be uncollectible .... $ 180,000
Accounts receivable ............ 1,750,000
Allowance for doubtful accounts (per books) .. 125,000
What is the net realizable value of Stuart€™s receivables at December 31, 2014?

3. Shore Co. provides for doubtful accounts based on 3% of credit sales. The following data are available for 2014.
Credit sales during 2014 .......... $2,400,000
Allowance for doubtful accounts 1/1/14 .... 17,000
Collection of accounts written off in prior years ... 8,000
Customer accounts written off as uncollectible during 2014 . 30,000
What is the balance in Allowance for Doubtful Accounts at December 31, 2014?

4. At the end of its first year of operations, December 31, 2014, Darden Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts . $950,000
Customer accounts written off as uncollectible during 2014 ... 24,000
Bad debt expense for 2014 ................ 84,000
What should be the balance in accounts receivable at December 31, 2014, before subtracting the allowance for doubtful accounts?

5. The following accounts were taken from Bullock Inc.€™s trial balance at December 31, 2014.

If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2014.

Instructions
Answer the questions relating to each of the five independent situations asrequested.

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Debit $4,000 Credit Allowance for doubtful accounts Net sales $1,200,000 Debit Credit $750,000 Net credit sales Allowance for doubtful accounts Accounts receivable 310,000