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Problem 3: The following account balances come from the records of Stone Company:                             &nbs

Problem 3:

The following account balances come from the records of Stone Company:

                                                                                        Beginning Balance                           Ending Balance

                Accounts Receivable                                                       $4,000                                                   $4,500

                Allowance for Doubtful Accounts $150                                                       $250

During the accounting period, Stone recorded $21,000 of service revenue on account. The company also wrote off a $180 account receivable.

Required: Answer the following questions.

  1. Determine the amount of cash collected from receivables.

  1. Determine the amount of bad debt expense recognized during the period.
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