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ACC410 P7-2 - Allowance for doubtful accounts balance $...

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PROBLEM 7-2 1. Net sales $1,200,000 Percentage           1 1/2 % Bad debt expense $     18.000 2. Accounts receivable $1,750,000 Amounts estimated to be uncollectible    (180,000 ) Net realizable value $1,570,000 3. Allowance for doubtful accounts 1/1/10 $17,000 Establishment of accounts written off in prior years 8,000 Customer accounts written off in 2010 (30,000) Bad debt expense for 2010 ($2,400,000 X 3%)   72,000 Allowance for doubtful accounts 12/31/10 $67,000 4. Bad debt expense for 2010 $     84,000 Customer accounts written off as uncollectible during     2010       (24,000
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Unformatted text preview: ) Allowance for doubtful accounts balance 12/31/10 $ 60,000 Accounts receivable, net of allowance for doubtful Accounts $ 950,000 Allowance for doubtful accounts balance 12/31/10 60,000 Accounts receivable, before deducting allowance for doubtful accounts $1,010,000 5. Accounts receivable $310,000 Percentage 3 % Bad debt expense, before adjustment 9,300 Allowance for doubtful accounts (debit balance) 14,000 1 Bad debt expense, as adjusted $ 23,300 2...
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