19. Assuming that Alicia uses the aging approach to estimate uncollectible accounts, what is the amount of bad debt expense for 2012?
a. $6,000
b. $7,000
c. $8,000
d. $9,000
e. $12,000
17. Amy Company sold merchandise of $8,000 to Tory Turnbull with terms 2/10, n/30. Amy Company recorded this transaction using the gross method. If Tory Turnbull paid for all the merchandize within the discount period, the journal entry that Amy Company will make to record the collection of cash would include a: a. Credit to Sales Discount of $160 b. Credit to Account receivable $7,840 c. Debit to Sales Discount of $160 d. Credit to Cash of $160 Use the following information to answer the questions 18 & 19. Alicia Corporation was established on 1/1/2011. The ending balance of Allowance for doubtful account was $2,000 on 12/31/2011. During 2012, the company experienced the following: Beginning balance of Accounts receivable account was $50,000 credit sales $100,000 collections on credit sales $60,000 aging analysis of accounts deemed uncollectible at 12/31/2012 shows $8,000 of potentially uncollectible accounts. No accounts receivable was determined to be uncollectible during 2012. 18. What is Alicia's net book value of accounts receivable on January 1, 2013? a. $100,000 b. $32,000 c. $82,000 d. $40,000 e. $90,000 19. Assuming that Alicia uses the aging approach to estimate uncollectible accounts, what is the amount of bad debt expense for 2012? a. $6,000 b. $7,000 c. $8,000 d. $9,000 e. $12,000 17. Amy Company sold merchandise of $8,000 to Tory Turnbull with terms 2/10, n/30. Amy Company recorded this transaction using the gross method. If Tory Turnbull paid for all the merchandize within the discount period, the journal entry that Amy Company will make to record the collection of cash would include a: a. Credit to Sales Discount of $160 b. Credit to Account receivable $7,840 c. Debit to Sales Discount of $160 d. Credit to Cash of $160 Use the following information to answer the questions 18 & 19. Alicia Corporation was established on 1/1/2011. The ending balance of Allowance for doubtful account was $2,000 on 12/31/2011. During 2012, the company experienced the following: Beginning balance of Accounts receivable account was $50,000 credit sales $100,000 collections on credit sales $60,000 aging analysis of accounts deemed uncollectible at 12/31/2012 shows $8,000 of potentially uncollectible accounts. No accounts receivable was determined to be uncollectible during 2012. 18. What is Alicia's net book value of accounts receivable on January 1, 2013? a. $100,000 b. $32,000 c. $82,000 d. $40,000 e. $90,000 19. Assuming that Alicia uses the aging approach to estimate uncollectible accounts, what is the amount of bad debt expense for 2012? a. $6,000 b. $7,000 c. $8,000 d. $9,000 e. $12,000
