Chapter 7 Homework Progress:1/3 items eBook Question Content Area Allowance Method for Accounting for Bad Debts At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $217,000, and the balance in Allowance for Doubtful Accounts was $3,700. EZ Tech's sales in 2017 were $1,630,000, 70% of which were on credit. Collections on account during the year were $1,040,000. The company wrote off $6,000 of uncollectible accounts during the year. Required: Question Content Area 1. Identify and analyze the sales during 2017. Activity Accounts Statement(s) Question Content Area How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues Expenses = Income fill in the blank 84830efe206e06e_2 fill in the blank 84830efe206e06e_4 fill in the blank 84830efe206e06e_5 fill in the blank 84830efe206e06e_7 fill in the blank 84830efe206e06e_9 fill in the blank 84830efe206e06e_10 fill in the blank 84830efe206e06e_12 fill in the blank 84830efe206e06e_14 fill in the blank 84830efe206e06e_15 fill in the blank 84830efe206e06e_17 fill in the blank 84830efe206e06e_19 fill in the blank 84830efe206e06e_20 Question Content Area Identify and analyze the transactions related to the collections of cash during 2017. Activity Accounts Statement(s) Question Content Area How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues Expenses = Income fill in the blank fd9607fc9070006_2 fill in the blank fd9607fc9070006_4 fill in the blank fd9607fc9070006_5 fill in the blank fd9607fc9070006_7 fill in the blank fd9607fc9070006_9 fill in the blank fd9607fc9070006_10 fill in the blank fd9607fc9070006_12 fill in the blank fd9607fc9070006_14 fill in the blank fd9607fc9070006_15 fill in the blank fd9607fc9070006_17 fill in the blank fd9607fc9070006_19 fill in the blank fd9607fc9070006_20 Question Content Area Identify and analyze the transactions related to the write-offs of accounts receivable during 2017. Activity Accounts Statement(s) Question Content Area How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues Expenses = Income fill in the blank 12b517ff5fee077_2 fill in the blank 12b517ff5fee077_4 fill in the blank 12b517ff5fee077_5 fill in the blank 12b517ff5fee077_7 fill in the blank 12b517ff5fee077_9 fill in the blank 12b517ff5fee077_10 fill in the blank 12b517ff5fee077_12 fill in the blank 12b517ff5fee077_14 fill in the blank 12b517ff5fee077_15 fill in the blank 12b517ff5fee077_17 fill in the blank 12b517ff5fee077_19 fill in the blank 12b517ff5fee077_20 Question Content Area 2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 2% of credit sales and (b) amounts expected to be uncollectible are 5% of the year-end accounts receivable. a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 2% of credit sales. Activity Accounts Statement(s) Question Content Area How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues Expenses = Income fill in the blank dff6b202c071ff6_2 fill in the blank dff6b202c071ff6_4 fill in the blank dff6b202c071ff6_5 fill in the blank dff6b202c071ff6_7 fill in the blank dff6b202c071ff6_9 fill in the blank dff6b202c071ff6_10 Question Content Area b. Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 5% of the year-end accounts receivable. Activity Accounts Statement(s) Question Content Area How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues Expenses = Income fill in the blank 66ceacfee043ff7_2 fill in the blank 66ceacfee043ff7_4 fill in the blank 66ceacfee043ff7_5 fill in the blank 66ceacfee043ff7_7 fill in the blank 66ceacfee043ff7_9 fill in the blank 66ceacfee043ff7_10 Question Content Area 3. What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)? Using the percentage of sales approach, the net realizable value of the receivables is? $fill in the blank 313eb2fcb03e064_1 Using the percentage of year-end receivables approach, the net realizable value of the receivables is? $fill in the blank 313eb2fcb03e064_2 4. The recognition of bad debts expense the net realizable value by the amount recorded in bad debts expense and the . The write-off of accounts the net realizable value.