Harrison Real Estate reported the following information for 2023:

1. If uncollectible accounts are determined by the percent-of-sales method to be 3 percent of net credit sales, what is the bad debt expense for 2023?

2. If uncollectible accounts are determined by the aging of receivables to be $3,450, what is the amount of net accounts receivable after adjusting entries for 2023?

Transcribed Image Text:

Accounts receivable, Jan. 1, 2023...... Allowance for doubtful accounts, Dec. 31, 2023, prior to adjustment......... Net credit sales during 2023........... Collections on account during 2023. Cash sales during 2023......... ...... $118,000 600 195,000 87,000 27,000