The following are a series of unrelated situations.

1. Halen Company’s unadjusted trial balance at December 31, 2022, included the following accounts.

Halen Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2022.

2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2022, disclosed the following.

Amounts estimated to be uncollectible ................ $ 180,000
Accounts receivable ................................................. 1,750,000
Allowance for doubtful accounts (per books) ......... 125,000

What is the cash realizable value of Stuart’s receivables at December 31, 2022?

3. Shore Co. provides for doubtful accounts based on 4% of gross accounts receivable, which had a balance of $1,500,000 at year-end. The following data are available for 2022.

Credit sales during 2022 ............................................................ $4,400,000
Allowance for doubtful accounts 1/1/22 ........................................ 17,000
Collection of accounts written off in prior years (customer credit
was reestablished)
 ............................................................................................................... 8,000
Customer accounts written off as uncollectible during 2022 ....... 30,000

What is the balance in Allowance for Doubtful Accounts at December 31, 2022?

4. At the end of its first year of operations, December 31, 2022, Darden Inc. reported the following information.

Accounts receivable, net of allowance for doubtful accounts ...................... $950,000
Customer accounts written off as uncollectible during 2022 ........................... 24,000
Bad debt expense for 2022 ................................................................................... 84,000

What should be the balance in accounts receivable at December 31, 2022, before subtracting the allowance for doubtful accounts?

5. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2022.

If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2022.

Instructions

Answer the questions relating to each of the five independent situations as requested.

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Debit Credit Accounts receivable $53,000 Allowance for doubtful accounts 4,000 Net sales $1,200,000