b$.$ On December $18,20$Y$5,$ reinstated the entire account of Dillon Berry and

received $$2,130$ cash as payment for the remaining amount owed.

Debit Credit

Eddy Book Co$.$ uses the allowance method to record uncollectible accounts receivable.

The company had credit sales of $$8,900,000$ for $20Y5$ and a balance of $$2,200$ in its

Allowance for Doubtful Accounts before any adjusting entries. The company has a

calendar year$-$end.

a$.$ Prepare the adjusting entry to record the Bad Debt Expense for $20Y5$ if the

company expects that $1\frac{1}{2}\%$ of credit sales will be uncollectible.

b$.$ What will the adjusted balance of Allowance for Doubtful Accounts be at year$-$

end?

Camel Bookstore records uncollectible accounts receivable using the allowance method.

The company had total sales of $$15,600,000,35\%$ of which were credit sales. The

company expects that $\frac{5}{8}\%$ of credit sales will be uncollectible.

a$.$ Prepare the adjusting entry on December $31,20$Y$5,$ to record the Bad Debt

Expense for the year.

b$.$ If the company's ending balance for Allowance for Doubtful Accounts was

$$50,240,$ what was the balance before the adjusting entry?

Estimate bad debt expense for Camel Bookstore using the information for the total

accounts receivable in the table below. Prepare the journal entry to record the expense

on December $31,20$ Y$.$

Using the allowance method, record the following transactions for Olive Oils Inc.:

a$.$ Received $$1,000$ in cash for Brad May's outstanding account receivable and

wrote off the remainder of $$750$ on July $6,20Y5.$

b$.$ Reinstated Brad May's account for the amount previously written off on

December $21,20$Y$5.$ Brad May paid for the amount owed in full.

Olive Oils Inc. has the following account balances at the $20Y5$ calendar year$-$end:

Accounts Receivable of $$10,250$ and Allowance for Doubtful Accounts of $$1,500.$ What is

the net realizable value that the company will report on its balance sheet?