The following are a series of unrelated situations. 1. Halen Companys unadjusted trial balance at December 31,
Question:
The following are a series of unrelated situations.
1. Halen Company’s unadjusted trial balance at December 31, 2015, included the following accounts.
Halen Company estimates its bad debt expense to be 1½% of net sales. Determine its bad debt expense for 2015.
2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2015, disclosed the following.
What is the cash realizable value of Stuart’s receivables at December 31, 2015?
3. Shore Co. provides for doubtful accounts based on 3% of credit sales. The following data are available for 2015.
What is the balance in Allowance for Doubtful Accounts at December 31, 2015?
4. At the end of its first year of operations, December 31, 2015, Darden Inc. reported the following information.
What should be the balance in accounts receivable at December 31, 2015, before subtracting the allowance for doubtful accounts?
5. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2015.
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2015.
Instructions Answer the questions relating to each of the five independent situations as requested.
Step by Step Answer:
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield