Could you please help me solve the accounting below? Please see the attached fil

Question

Could you please help me solve the accounting below? Please see the attached file. Please help to do it step-by-step with all the workings and solutions. Thank you very much!

On its recent financial statements, Hassell Fine Foods reported the following information about net sales revenue and accounts receivable (amounts in thousands):

According to its Form 10-K, Hassell recorded bad debt expense of $102 and did not reinstate any previously written-off accounts during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.)

Required:

1. What amount of bad debts was written off during the current year? (Enter your answers in thousands not in dollars.)

2. Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Hassell’s sales during the period were on open account. (Enter your answers in thousands not in dollars.)

Current Year Prior
Year Accounts receivable, net of allowances of $223 and $187 $ 14,289 $ 12,038 Net revenues 62,170 52,872 Allowance for Doubtful Accounts Beg. bal. End. bal.

Explanation / Answer

Allowances for Bad Debts Debit Credit Beg. Balance 187 Accounts Receivable 66 Bad Debts Exp 102 Cl. Bal. 223 Accounts Receivable Debit Credit Beg. Balance        12,225 Cash Collected        59,817 Sales during the year        62,170 Account W/o                 66 Cl. Bal.        14,512 1. Bad Dbets Written off $66 2. Cash Collected 59,817

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