Question

1)

On December 31, 2018, Ava Company had an ending balance of $7,356 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $143. Ava estimates uncollectible accounts expense to be 9% of receivables. .Based on this information, the amount of net realizable accounts receivable shown on the 2018 balance sheet is $___________

2) Hope Company’s total assets were $5,107. Hope collected on $529 of account receivable that had previously been written off.  After the collection, Hope’s total assets will be $______

3) On June 1, 2018, Bodie Co. accepted a $6,800 face value note as evidence of a loan it made to T Company. The note had a 11 percent interest rate and a one-year term. What is the interest revenue recognized by Bodie in 2019?

4) Ava Company sets bad debt expense at 2 percent of its sales. Ava reported total sales of $ 64,449. Before the adjustment, Ava had $547 credit balance in its allowance for doubtful accounts.

What is the ending balance in the Allowance for Doubtful Accounts that Ava report on its Balance Sheet?

Answer 1