Bad debts analysis$-$Allowance account and financial statement effects The following is a portion of the current asset section of the baiance

sheets of HiROE Co$.,$ at December $31,2023$ and $2022$:

Required:

a$.$ Describe how the allowance amount at December $31,2023,$ was most likely determined.

b$.$ If bad debts expense for $2023$ totaled $$19,000,$ what was the amount of accounts receivable written off during the year? $($Hint: Use

the T$-$account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.$)$

c$.$ The December $31,2023,$ Allowance account balance includes $$7,500$ for a past due account that is not likely to be collected. This

account has not been written off. If it had been written off, what would have been the effect of the write$-$off on

Working capital at December $31,2023?$

Net income and ROI for the year ended December $31,2023?$

d$.$ What do you suppose was the level of HiROE's sales in $2023,$ compared to $2022?$ Explain your answer.

e$.$ Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December $31,2023$

and $2022.$ What factors might have caused the change in this ratio?

Problem $5\mathrm{.}30$

LO $5-5$

Bad debts analysis$-$Allowance account and financial statement effects The following is a portion of the current asset section of the balance

sheets of HiROE Co$.,$ at December $31,2023$ and $2022$:

Required:

a$.$ Describe how the allowance amount at Dec

ember $31,2023,$ was most likely determined.

b$.$ If bad debts expense for $2023$ totaled $$19,000,$ what was the amount of accounts receivable written off during the year? $($Hint: Use

the T$-$account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.$)$

c$.$ The December $31,2023,$ Allowance account balance includes $$7,500$ for a past due account that is not likely to be collected. This

account has not been written off. If it had been written off, what would have been the effect of the write$-$off on

Working capital at December $31,2023?$

Net income and ROI for the year ended December $31,2023?$

d$.$ What do you suppose was the level of HiROE's sales in $2023,$ compared to $2022?$ Explain your answer.

e$.$ Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December $31,2023$

and $2022.$ What factors might have caused t

Problem $5\mathrm{.}30$

LO $5-5$

Bad debts analysis$-$Allowance account and financial statement effects The following is a portion of the current asset section of the balance

sheets of HiROE Co$.,$ at December $31,2023$ and $2022$:

Required:

a$.$ Describe how the allowance amount at December $31,2023,$ was most likely determined.

b$.$ If bad debts expense for $2023$ totaled $$19,000,$ what was the amount of accounts receivable written off during the year? $($Hint: Use

the T$-$account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.$)$

c$.$ The December $31,2023,$ Allowance account balance includes $$7,500$ for a past due account that is not likely to be collected. This

account has not been written off. If it had been written off, what would have been the effect of the write$-$off on

Working capital at December $31,2023?$

Net income and ROI for the year ended December $31,2023?$

d$.$ What do you suppose was the level of HiROE's sales in $2023,$ compared to $2022?$ Explain your answer.

e$.$ Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December $31,2023$

and $2022.$ What factors might have caused the change in this ratio?he change in this ratio?