Problem 7-2

	Your answer is partially correct. Try again.

Presented below are a series of unrelated situations. Answer the questions relating to each of the five independent situations as requested. 1. Sandhill Companys unadjusted trial balance at December 31, 2017, included the following accounts.

		Debit		Credit
Accounts receivable		$52,100
Allowance for doubtful accounts		$6,350
Net sales				$1,223,900

Sandhill Company estimates its bad debt expense to be 5% of gross accounts receivable. Determine its bad debt expense for 2017.

Bad debt expense for 2017

$

2. An analysis and aging of Teal Corp. accounts receivable at December 31, 2017, disclosed the following.

Amounts estimated to be uncollectible		$ 181,850
Accounts receivable		1,759,600
Allowance for doubtful accounts (per books)		127,290

What is the net realizable value of Teals receivables at December 31, 2017?

The net realizable value

$

3. Flint Co. provides for doubtful accounts based on 3% of gross accounts receivable, The following data are available for 2017.

Credit sales during 2017		$1,731,800
Bad debt expense		57,960
Allowance for doubtful accounts 1/1/17		16,450
Collection of accounts written off in prior years (customer credit was reestablished)		7,750
Customer accounts written off as uncollectible during 2017		32,200

What is the balance in Allowance for Doubtful Accounts at December 31, 2017?

The balance in Allowance for Doubtful Accounts

$

4. At the end of its first year of operations, December 31, 2017, Buffalo Inc. reported the following information.

Accounts receivable, net of allowance for doubtful accounts		$860,700
Customer accounts written off as uncollectible during 2017		24,180
Bad debt expense for 2017		76,910

What should be the balance in accounts receivable at December 31, 2017, before subtracting the allowance for doubtful accounts?

Accounts receivable, before deducting allowance for doubtful accounts

$

5. The following accounts were taken from Carla Inc.s trial balance at December 31, 2017.

		Debit		Credit
Net credit sales				$743,400
Allowance for doubtful accounts		$12,750
Accounts receivable		311,300

If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2017.

The bad debt expense, as adjusted

$

Click if you would like to Show Work for this question:

Open Show Work