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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Debit $8,000 60,000 Credit Allowance for doubtful accounts Sales revenue Sales returns and allowances Sales discounts $1,980,000 4,400 Amounts estimated to be uncollectible Accounts receivable Allowance for doubtful accounts (per books) $160,000 1,790,000 125,000 Credit sales during 2014 Allowance for doubtful accounts 1/1/14 Collection of accounts written off in prior years $3,200,000 37,000 (customer credit was re-established) Customer accounts written off as uncollectible during 2014 18,000 36,000 Accounts receivable, net of allowance for doubtful accounts Customer accounts written off as uncollectible during 2014 Bad debt expense for 2014 $950,000 24,000 92,000 Debit Credit Sales revenue (all on credit) Sales discounts Allowance for doubtful accounts Accounts receivable $950,000 $ 21,400 34,000 610,000