n its recent fnandal statements, Hassel Fine Foods reported the folowing informa

Question

n its recent fnandal statements, Hassel Fine Foods reported the folowing information about net sales revenue and a counts recevable amonts in thousands Accourts receivable, net of allowances of $293 and $257 Net revenues Current Yoar S 14909 S 12,738 3,92054 822 According to its Form 10-K, Hassell recorded bad debt expense of $116 and did not reinstate any bad debts on the Accounts Recelvable (Gross) and the Allowance for Doubtful Accounts T previously wirten-off accounts during the curment year.(Hint Refer to the summary of the effects of accounting for -accounts. Use the T-acoounts to solve for the missing values.) Required: 1. What amount of bad debts was writen off during the current year? (Entet your answers in thousands not in dollans) Beg. bal End. bal 2.Based on your answer to roqurement (1),solvefor cash colected hom customers for the arrent year, assuming that al cr Hassers san dmg the period were on open acount (Enter your wers in thousands not in dollars.) Beg. bal End. bal MacBook Air

Explanation / Answer

1 Allowance for Doubful Accounts Beg. Bal. 257 Write offs 80 116 Bad debts expense End. Bal. 293 Amount of bad debts written off $80 2 Accounts Receivable(Gross) Beg. Bal. 12995 Net sales 63920 80 Write offs 61553 Cash collections End. Bal. 15282 Amount of cash collections $61553 Question-2 Gross sales 19100 =4900+10200+4000 Less: Credit card discount 98 =4900*2% Sales discount 204 =10200*2% Net sales 18798

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