Determine bad debt expense for 2017

Assignment Help Accounting Basics

Reference no: EM131812466

Presented below are a series of unrelated situations.

Answer the questions relating to each of the five independent situations as requested.

1. Sheridan Company's unadjusted trial balance at December 31, 2017, included the following accounts.

	Debit	Credit
Accounts receivable	$53,600
Allowance for doubtful accounts	$5,450
Net sales		$1,209,200

Sheridan Company estimates its bad debt expense to be 6% of gross accounts receivable. Determine its bad debt expense for 2017.

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

Amounts estimated to be uncollectible		$ 181,130
Accounts receivable		1,774,300
Allowance for doubtful accounts (per books)		126,200

What is the net realizable value of Skysong's receivables at December 31, 2017?

3. Concord Co. provides for doubtful accounts based on 4% of gross accounts receivable, The following data are available for 2017.

Credit sales during 2017		$2,423,400
Bad debt expense		57,590
Allowance for doubtful accounts 1/1/17		15,880
Collection of accounts written off in prior years (customer credit was reestablished)		8,340
Customer accounts written off as uncollectible during 2017		29,140

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

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

Accounts receivable, net of allowance for doubtful accounts		$986,400
Customer accounts written off as uncollectible during 2017		24,890
Bad debt expense for 2017		88,450

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

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

	Debit	Credit
Net credit sales		$714,400
Allowance for doubtful accounts	$14,760
Accounts receivable	340,100

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

Reference no: EM131812466

Questions Cloud

Define probability that inspector will have to walk more : An inspector is looking for nonconforming welds in the gasoline pipeline betweenPhoenix and Tucson. The probability that any particular weld will be defective.

Prepare a multi-step income statement : Prepare a multi-step income statement for the year 2017. Do not prepare a statement of comprehensive income.

Compute the net income for the current year : Compute the net income for the current year, assuming that there were no entries in retained earnings was paid in current year

Discuss how online networking can help you find a job : Discuss how online networking can help you find a job - Post the complete URL for a website you can use to stay connected to your field, find job postings

Determine bad debt expense for 2017 : Sheridan Company estimates its bad debt expense to be 6% of gross accounts receivable. Determine its bad debt expense for 2017.

Find probability that an aircraft in flight can land safely : A commercial jet aircraft has four engines. For an aircraft in flight to land safely, at least two engines should be in working condition.

Calculate the sample mean and sampling error : List all samples of four numbers (without replacement) that can be selected from this population. Calculate the sample mean and sampling error.

What are the major differences between dial-up and isdn : What are the major differences between dial-up, ISDN, and frame relay WAN technologies? Identify the features and benefits of cloud computing and NaaS.

Find summary descriptive statistics for key variables : The first step in analyzing data sets is to find some summary descriptive statistics for key variables. Since the assignment problems will focus mostly.

User Account

All Pages