38 %ED o etisalat F 15:47 my cud.ac.ae Ill/ For each of the following scenarios, Estimate: (3 Marks) 1.The Bad Debt Expense to be recorded in 2015. 2 The balance in the Allowance for Doubtful Accounts Account at December 31, 2015. 3. And the net realizable value of the Accounts Receivable at December 31, 2015. A. An analysis of Simmon's Company's AED830,000 balance in Accounts Receivable at December 31, 2015, indicates AED15,500 of uncollectible receivables. Before adjustment the balance in Allowance for Doubtful Accounts is a credit balance of AED1,200. B. Blake Company had net credit sales of AED900,000 during 2015, and has an Accounts Receivable balance of AED425,000 at December 31, 2015, and an Allowance for Doubtful Accounts credit balance of AED8000. Blake estimates Bad Debt Expense as 3/4 of 1% of net credit sales. c. Hidgon Inc. has a balance of AED312,000 in Accounts Receivable at December 31,2015. An analysis of those receivables shows AED2400 will probably not be collected. Before adjusting entries are prepared, the Allowance for Doubtful Accounts has a debit balance of AED750. Solution