Question

Part A:

As of 1/1/2019, U.S, Saddle Company of New Bedford, MA has an Allowance for Doubtful Accounts balance of $22,000. During 2019, U.S. Saddle writes off specific accounts receivable worth a total of $19,000. At the end of the year, U.S. Saddle records Bad Debt Expense of $25,000. What will be the balance of Sad Men’s Allowance for Doubtful Accounts as of 12/31/2019?

Part B:

1. Before recording any adjusting entries, The Villella Company reports the following information on its Unadjusted Trial Balance (as of 12/31/2019):

Account	Debit	Credit
Accounts Receivable	18,500
Allowance for Doubtful Accounts		280
Sales (all credit sales)		116,000

The Villella Company uses the Percentage of Credit Sales method and estimates that 1% of credit sales are uncollectible. What is the Net Realizable Value of Accounts Receivable that will be reported on the company’s balance sheet as of 12/31/19?

Part C:

2017. Before recording any adjusting entries, Domenica's Baked Goods. reports Accounts Receivable of $540,000 and an Allowance for Doubtful Accounts of $2,200 (credit balance) as of 12/31/2018. The company uses the Aging Method to estimate account uncollectibility, as follows:

A/R Aging		A/R Amount			Estimated Percent Uncollectible		Estimated Amount Uncollectible
Not yet due		$ 415,000			1%		$ 4,150
0 – 60 days past due		82,000			8%		6,560
Over 60 days past due		43,000			30%		12,900
Total		$ 540,000					$23,610

What adjusting journal entry should Domenica's Baked Goods record at the end of 2018 related to its estimate of uncollectible accounts?

Answer 1