Question
13. Accelerated Solutions has the following data for the year ended December 31, Year 1: Accounts receivable (January 1, Year 1) $ 350,000 Credit sales
13. Accelerated Solutions has the following data for the year ended December 31, Year 1:
Accounts receivable (January 1, Year 1) | $ 350,000 |
Credit sales | 1,200,000 |
Collections from credit customers | 850,000 |
Customer accounts written off as uncollected | 10,000 |
Allowance for doubtful accounts (January 1, Year 1) | 35,000 |
Estimated uncollected accounts based on an aging analysis (December 31, Year 1) | 50,000 |
Refer to Accelerated Solutions. If the aging approach is used to estimate bad debts, what is the balance in the allowance for doubtful accounts after the bad debt expense adjustment?
| a. | $10,000 |
| b. | $15,000 |
| c. | $25,000 |
| d. | $50,000 |
14. MicroScan Technologies reported the following information:
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Refer to MicroScan Technologies. How much cash was received for interest during Year 2?
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15. AT&U Company has the following data for the year ended December 31, Year 1:
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Refer to AT&U Company. If the company estimates its bad debt to be 2% of net credit sales, what will be the balance in the allowance for doubtful accounts after the adjustment for bad debt expense?
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