Problem 1) Spock Company's unadjusted trial balance at Dec 31, 2007, included the following accounts.
Debit Credit
Allowance for doubtful accounts $4000
Net Sales $1,500,000
Spock Co. estimates its bad debt expense to be 1.5% of net sales. Determine its bad debt expense for 2007.
Problem 2) An Analysis and aging of Scotty Cop. accounts receivable at Dec 31, 2007, disclosed the following.
Amounts estimated to uncollectible $180,000
accounts receivable $1,750,000
Allowance for doubtful accounts $125,000
What is the net realizable value of Scotty's receivables at Dec 31st, 2007?
Problem 3) At the end of its first year of operations, Dec 31,2007, Chekov inc. reported the following info.
Accounts receivable, net of allowance for doubtful accounts $950,000
Customer accounts written off as uncollectible during 2007 $24,000
Bad Debt expense for 2007 $84,000
What should be the balance in accounts receivable at Dec 31, 2007, before subtracting the allowance for doubtful accounts?
Problem 4) The following accounts were taken from Chappel Inc's trial balance at dec 31, 2007.
DEBIT CREDIT
Net credit sales $750,000
Allowance for doubtful Accounts $14,000
Accounts receivable 410,000
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 07