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5) Radius Co. is a large wholesaler of electronics. At the end of 2023, the company's controller estimates 8% of the $120,000 in Accounts Receivable
5) Radius Co. is a large wholesaler of electronics. At the end of 2023, the company's controller estimates 8% of the $120,000 in Accounts Receivable will be uncollectible. a. Write the journal entry to record Bad Debt Expense for the period if the Allowance for Doubtful Accounts has a credit balance of $1,100 before this adjusting entry is posted: b. How does the posting of this journal entry affect the accounting equation? c. What is the Net Realizable Value of Accounts Receivable reported in Radius Co.'s balance sheet as of Dec. 31, 2023? 6) (Continuation of question 5). Assume that during 2024, a total of $8,250 Accounts Receivable has to be written off due to customers' inability to pay what they owe Radius Co. a What in urnal entry wenuld he uced to resord thic write.nff af $8250 ? b. How does the posting of this journal entry affect the accounting equation? c. What is the Allowance for Doubtful Accounts balance after this write off? (Your answer should indicate the amount and whether it is a Debit or Credit balance. Hint: Use a T-account to determine your answer.) d. Radius Co. assumes that at the end of 2024,6% of its new $185,000 Accounts Receivable balance will be uncollectible. Using the Allowance for Doubtful Accounts balance from above (question 6c.) determine the Bad Debt Expense that would be recorded at the end of 2024 and enter the journal entry below
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