Bad Debt Expense E Accumulated Allowence for Bad Debts Bad Debts Incured A 1 Month 2 January 3 Febuary 4 March 5 April 6 May 7 June 8 July 9 August 10 September 11 October 12 November 13 December 14 Total 15 B Sales $ 4,000.00 $ 6,000.00 $ 5,000.00 $ 7,000.00 $ 9,000.00 $ 5,000.00 S 3,000.00 $ 4,000.00 $ 8,000.00 $ 10,000.00 $ 9,000.00 $ 2,000.00 $ 72,000.00 There are a total of 4 mini-case questions, please answer each of them and upload your finished excel document to Moodle. CASE STUDY QUESTION 1 Bad Debt (Accounts Receivable) Wally's Wallpaper Company As of October, Wally's Wallpaper Company has the following transactions relating to sales and bad debts during the year (total sales for the year were $72,000, broken down as shown in the accompanying schedule): Wally estimates his bad debts will be 2 percent of sales and maintains an allowance for bad debts based on that assumption. In May, a customer who owed him $500 files for bankruptcy, so Wally will never collect that debt In October, a customer (who was renting the house in which Wally hung some wallpaper) skips out of town. No one can find him, so Wally assumes he will never collect that debt, which is $800. Your assignment: Make up a schedule of sales, the resulting increases in the allowance for bad debts, and the write-off of bad debts. (l've started the format for you.) Bad Debt Expense E Accumulated Allowence for Bad Debts Bad Debts Incured A 1 Month 2 January 3 Febuary 4 March 5 April 6 May 7 June 8 July 9 August 10 September 11 October 12 November 13 December 14 Total 15 B Sales $ 4,000.00 $ 6,000.00 $ 5,000.00 $ 7,000.00 $ 9,000.00 $ 5,000.00 S 3,000.00 $ 4,000.00 $ 8,000.00 $ 10,000.00 $ 9,000.00 $ 2,000.00 $ 72,000.00 There are a total of 4 mini-case questions, please answer each of them and upload your finished excel document to Moodle. CASE STUDY QUESTION 1 Bad Debt (Accounts Receivable) Wally's Wallpaper Company As of October, Wally's Wallpaper Company has the following transactions relating to sales and bad debts during the year (total sales for the year were $72,000, broken down as shown in the accompanying schedule): Wally estimates his bad debts will be 2 percent of sales and maintains an allowance for bad debts based on that assumption. In May, a customer who owed him $500 files for bankruptcy, so Wally will never collect that debt In October, a customer (who was renting the house in which Wally hung some wallpaper) skips out of town. No one can find him, so Wally assumes he will never collect that debt, which is $800. Your assignment: Make up a schedule of sales, the resulting increases in the allowance for bad debts, and the write-off of bad debts. (l've started the format for you.)