Accounts Receivable

Use the following facts to answer the questions below:

On January 1, 2020. Bluth Co had a $100,000 balance in the Accounts Receivable account and a $12,000 balance in the Allowance for Doubtful Accounts account. During 2020, Bluth provided $1,500,000 of services on account. The company collected $ 1,350,000 in cash from accounts receivable.

a) What is the amount of bad debt expense that will be recorded on 12/31/2019 if Bluth Co. uses the percentage of receivables method at a rate of 10%? b) What is the net realizable value of accounts receivable on 12/31/2019 if the percentage of receivables method is used?

c) What is the amount of bad debt expense that will be recorded on 12/31/2019 if Bluth Co. uses the percentage of sales method at a rate of 1%?

d) What is the net realizable value of accounts receivable on 12/31/2019 if the percentage of sales method is used?

e) On Feburary 24th, 2020 a Bluth Co. Customer filed for bankruptcy. Record the entry for Bluth Co. to write off the account of $21,000

2. Accounts Receivable (10 points): Use the following facts to answer the questions below: On January 1, 2020. Bluth Co, had a $100,000 balance in the Accounts Receivable account and a $12,000 balance in the Allowance for Doubtful Accounts account. During 2020. Bluth provided $1,500,000 of services on account. The company collected $1,350,000 in cash from accounts receivable a What is the amount of bad debt expense that will be recorded on 12/31/2019 if Bluth Co. uses the percentage of receivables method at a rate of 10%? I b. What is the net realizable value of accounts receivable on 12/31/2019 if the percentage of receivables method is used? c. What is the amount of bad debt expense that will be recorded on 12/31/2019 if Bluth Co. uses the percentage of sales method at a rate of 196? d. What is the net realizable value of accounts receivable on 12/31 2019 if the percentage of sales method is used? D Focus