Sphere Corp operates on an industry that has high rate of bad debts. December 31, before any

Question:

Sphere Corp operates on an industry that has high rate of bad debts. December 31, before any yearâ€“end adjustment, the balance in Sphere's Account Receivable account was $75,000 and the allowance for Doubtful Accounts had a balance of $37,500. Year-end balance reported in the statement financial position for the allowance for Doubtful Accounts will be based on the aging schedule shown below.

a. What is the appropriate balance for the allowance for Doubtful Accounts on December 31?
b. Show how accounts receivable would be presented on the balance sheet prepared on December 31?
c. What is the dollar effect of the year-end bad debit adjustment on the before-tax income for theyear?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...