#$3-8$The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of $2024,$ the allowance account

had a credit balance of $$77,900.$ Credit sales for $2024$ totaled $$2,460,000$ and the year$-$end accounts recelvable balance was

$$520,000.$ During this year, $$75,500$ in recelvables were determined to be uncollectible. Manda Panda anticipates that $4\%$ of all credit

sales will ultimately become uncollectible. The fiscal year ends on December $31.$

Required:

Does this situation describe a loss contingency?

What is the bad debt expense that Manda Panda should report in its $2024$ income statement?

Prepare the approprlate journal entry to record the contingency.

Complete the table below to calculate the net accounts recelvable value Manda Panda should report in Its $2024$ balance sheet.

Complete this question by entering your answers in the tabs below.

Complete the table below to calculate the net accounts receivable value Manda Panda should report in its $2024$ balance sheet.The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of $2024,$ the allowance account had a credit balance of $$77,900.$ Credit sales for $2024$ totaled $$2,460,000$ and the year$-$end accounts receivable balance was $$520,000.$ During this year, $$75,500$ in receivables were determined to be uncollectible. Manda Panda anticipates that $4\%$ of all credit sales will ultimately become uncollectible. The fiscal year ends on December $31.$

Required:

Does this situation describe a loss contingency?

What is the bad debt expense that Manda Panda should report in its $2024$ income statement?

Prepare the appropriate journal entry to record the contingency.

Complete the table below to calculate the net accounts receivable value Manda Panda should report in its $2024$ balance sheet.