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Accounts Receivable Problem Type I - PERCENTAGE OF SALES (OR INCOME STATEMENT APPROACH) For 2015, The...

Accounts Receivable Problem Type I - PERCENTAGE OF SALES (OR INCOME STATEMENT APPROACH)
For 2015, The company reported the following:
?A/R beginning of Year = $ 20,000
?Allowance at Beginning of year = $18,800?(Credit balance)
?Credit Sales = $ 91,250
?Write-offs = $21,000
?Cash collections = 80,000
?Total expense = 70,000
1. The company estimates that be 12% of annual sales will be uncollected each
year. What is the Bad Debt Expense for 2015 ?
2. What is the ending balance for the allowance for doubtful accounts ?
3. What is net realizable value of Accounts receivables before and after write off?
4. What is NI after write off?
Accounts Receivable Problem Type II -percentage of receivable or aging method
For 2014, Acme Inc. reported the A/R at end of the Year = $ 200,000.
The age of the Accounts was:
?< 30 days??= $100,000
?30-60 days??= $ 60,000
?60-90 days??= $ 30,000
?> 90 days??= $ 10,000
?TOTAL?? $200,000
The company estimates that 4 % of accounts < 30 days old will be uncollected; 10% of the accounts 30-60 days old will be uncollected;
50% of the accounts 60-90 days old will be uncollected; and
90% of the accounts > 90 days old will be uncollected.
In 2014, Acme wrote-off $21,000 in accounts receivable. The beginning balance of the allowance was $ 54,000
?
1. What is the ending balance for the allowance for doubtful accounts ?
2. What is Acme's Bad Debt Expense for 2014 ?
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