Problem
Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and Receivables:
Sales $29,250 (of which 40% are credit sales still outstanding)
Sales returns and Allowances $1,000
Miscellaneous Receivables $1,212
Allowance for Doubtful Accounts $1,502
Long term Receivables $9,014
Advances to Shareholders and Directors $4,299
Notes Receivables $2,903 (Current Portion)
Bad Debt Expense is estimated as 4% of credit sales
Task
A. Assuming no other transaction happened, what is the Bad Debt Expense reported on Decmber 31st?
B. Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st?
C. Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st?