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Analyzing Accounts Receivable, Bad Debt Expense, and write-Offs The following separate scenarios require an analysis of bad debt expense. 1. Roundtree Inc., a manufacturer of

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Analyzing Accounts Receivable, Bad Debt Expense, and write-Offs The following separate scenarios require an analysis of bad debt expense. 1. Roundtree Inc., a manufacturer of natural foods, reported credit sales of $1,150,000 in 2021. Roundtree also reported the following balances. Dec. 31, 2020 Dec 31, 2021 Accounts receivable $250,000 $325,000 Allowance for doubtful accounts 15,000 27,500 Roundtree wrote off $5,000 of accounts during 2021. How much cash was collected from credit sales in 2021? $ 0 2. Brynn Inc., an electronics servicing company, reported $40,000 of gross cash sales (on which there were $2,000 of actual returns and allowances) and $60,000 of gross credit sales (on which $3,000 of cash discounts were taken) in 2020. The beginning and ending balances of accounts receivable in 2020 were $20,000 and $15,000, respectively. How much cash was collected in 2020 from sales? $ 0 3. Vantage Company had a beginning balance of $250,000 in the allowance for doubtful accounts, wrote off accounts totaling $10,000 during the year, and estimated the ending balance in the allowance to be 10% of accounts receivable based on an analysis of the December 31, 2020, accounts receivable balance of $3,000,000 What is bad debt expense for the year? $0 3. Vantage Company had a beginning balance of $250,000 in the allowance for doubtful accounts, wrote off accounts totaling $10,000 during the year, and estimated the ending balance in the allowance to be 10% of accounts receivable based on an analysis of the December 31, 2020, accounts receivable balance of $3,000,000 What is bad debt expense for the year? $0 support 4. Seven Flags Inc. had a beginning balance and ending balance in accounts receivable of $140,000, and $260,000, respectively. Sales on credit were $2,000,000 for the year and the company wrote off accounts totaling $28,000 during the year. What were cash collections on sales during the year? so If the company estimates expected bad debt expense as 0.5% of credit sales, what is the net realizable value of accounts receivable at year-end? $0

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