Gomez, Inc. sells machinery and equipment to farmers. Most sales are on account. On April 1,...

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Gomez, Inc. sells machinery and equipment to farmers. Most sales are on account. On April 1, 2017, the company has a debit balance of $280,000 in accounts receivable and a credit balance of $12,600 in the allowance for doubtful accounts. During the second quarter (from April 1 through June 30, 2017), Gomez records the following activities: • Total sales of $315,000. $5,000 are in cash, and the rest are on account. • Cash collections from customers for previous credit sales totaling $395,000. • Write-offs of two accounts as uncollectible: one for $4,500 and one for $9,700. Based on historical averages and expectations about the economy going forward, Gomez calculates bad debt expense as 4.0% of credit sales during the period. Calculate the following amounts (enter whole numbers without a $): a. The bad debt expense for the quarter ended June 30, 2017. b. The balance of accounts receivable on June 30, 2017. c. The balance of the allowance for doubtful accounts on June 30, 2017. d. The net accounts receivable balance on June 30, 2017. Gomez, Inc. sells machinery and equipment to farmers. Most sales are on account. On April 1, 2017, the company has a debit balance of $280,000 in accounts receivable and a credit balance of $12,600 in the allowance for doubtful accounts. During the second quarter (from April 1 through June 30, 2017), Gomez records the following activities: • Total sales of $315,000. $5,000 are in cash, and the rest are on account. • Cash collections from customers for previous credit sales totaling $395,000. • Write-offs of two accounts as uncollectible: one for $4,500 and one for $9,700. Based on historical averages and expectations about the economy going forward, Gomez calculates bad debt expense as 4.0% of credit sales during the period. Calculate the following amounts (enter whole numbers without a $): a. The bad debt expense for the quarter ended June 30, 2017. b. The balance of accounts receivable on June 30, 2017. c. The balance of the allowance for doubtful accounts on June 30, 2017. d. The net accounts receivable balance on June 30, 2017.

Answer rating: 100% (QA)

Answera Bad Debt Expense Credit Sales4 3100004 12400 Answerb Beginning Balance of Acco... View the full answer