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1 Normal 1 No Spac... Heading 1 Hear FS Paragraph Ev Styles Use the following information to answer the questions 18 & 19. Alicia Corporation
1 Normal 1 No Spac... Heading 1 Hear FS Paragraph Ev Styles 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 A- A
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