$1.$ How does the entry to write$-$off a specific customer$$s account affect net income?$$ How does it affect the net realizable value of A$/$R$?$

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$2.$ How does the entry to estimate bad debts affect net income?$$ How does it affect the net realizable value of A$/$R$?$ When should this entry be recorded?

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$3.$ How could the AFDA have a debit balance before AJE$$s$?$

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$4.$ Refer to P&G$$s Balance Sheet. How much does P&G expect to collect from customers at $6/30/2024$ and $6/30/2023?$

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$5.$ Assume all of P&G$$s $2024$ sales were credit sales and collections on account were $$80,192$M$.$ Calculate the amount of accounts written off during the year ended $6/30/24.($Hint:$$ make a t$-$account for A$/$R$).$

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$6.$ Belle, Inc. reported the following information for $2024$:

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Sales $=$ $$3,300,000(80\%$ credit$)$

A$/$R $(12/31)=$ $$150,000$

AFDA $($before AJE$$s$)=$ $$2,300$ debit

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A$.$ Assume $3\%$ of A$/$R are estimated uncollectible.$$

$1.$ Record the entry to estimate bad debts.$$

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$2.$ What is the net realizable value of A$/$R$?$

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B$.$ Assume net A$/$R at $12/31/23=$ $$175,000.$

$1.$ Compute the days$$ sales in receivables $($average collection period$)$ for $2024.$

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$2.$ Comment on this ratio assuming credit terms offered to customers are $2/10,$ n$/30.$

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