1. Grouper Company’s unadjusted trial balance at December 31, 2017, included the
ID: 2429560 • Letter: 1
Question
1. Grouper Company’s unadjusted trial balance at December 31, 2017, included the following accounts.
Debit
Credit
Grouper Company estimates uncollectible accounts to be 5% of gross accounts receivable. Determine its bad debt expense for 2017.
2. An analysis and aging of Monty Corp. accounts receivable at December 31, 2017, disclosed the following.
What is the net realizable value of Monty’s receivables at December 31, 2017?
3. Flounder Co. provides for doubtful accounts based on 2% of gross accounts receivable, The following data are available for 2017.
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, Culver Inc. reported the following information.
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 Larkspur Inc.’s trial balance at December 31, 2017.
Debit
Credit
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2017.
Debit
Credit
Accounts receivable $48,400 Allowance for doubtful accounts $7,230 Net sales $1,209,100Explanation / Answer
1). uncollectible accounts to be 5% of gross accounts receivable
Balance of Uncollectible accounts to be = $48400 * 5%= $2420 credit balance
Allowance for doubtful accounts = $7230 debit balance
Bad debts expense = $2420 + $7230 = $9650
2). Net realizable value of Monty’s receivables at December 31, 2017
Accounts receivable = $1,771,700
Less: Amounts estimated to be uncollectible = $181,220
Net realisable value = $1,590,480
3). Balance in Allowance for Doubtful Accounts at December 31, 2017:-
Allowance for doubtful accounts 1/1/17 = $16,030
Add: Baddebts expense = $59,490
Add: Collection of accounts written off in prior years = $8,360
Less: Customer accounts written off as uncollectible during 2017 = $30700
Balance in Allowance for doubtful accounts = $53,180
4). Balance in accounts receivable at December 31, 2017:
Accounts receivable, net of allowance for doubtful accounts = $933,600
Less: Customer accounts written off as uncollectible during 2017 = $24,260
Add: Baddets expense = $87,820
Balance in accoutn receivable at Dec = $997,160
5). This question is same like 1).
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.