ANC company has following data.Total Sales for the accounting period were $50,000,000.Out of which 15% are Cash Sales. The balance in Accounts Receivable was $530,000 at the end of accounting period. The company estimates that 1.75% of credit sales are uncollectible. Allowance for Doubtful debt Accounts has a credit balance of $15,000. It estimates 8% of the receivables are uncollctible.Required:-

(a) Provide the adjusting journal entry necessary to record bad debt Expenses using

1) direct write off method where $17,500 debts were uncollcetible.

2) percentage of Sales method.

3) Percentage of receivables method.

(b) Record journal entry for bad debt recovery of $1,500. under above three methods.

(c) Write off $ 10,000 of actual bad debts under percentage of sales and percentage of receivables method.

(d) Show your work using T accounts under each method.

(e)What is the net realizable value of accounts receivable under each method?

Provide partial presentation of assets section of balance sheet.

Answer rating: 100% (QA)

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