Assume that Dyson Repair has the following balances as of Jan 1, 2023 Accounts Receivable Accounts Receivable (gross) 600,000 600,000 Allowance for Doubtful Accounts 30,000 During 2023, Dyson had credit sales of $3,100,000 and collected $3,000,000 on prior credit sales Dysons policy is to write off receivables that are more than 120 days past due During 2023, Dyson wrote off $25,000 of its receivables and recovered a $5,000 receivable that it had previously written off At December 31, 2023, an aging of Dysons accounts receivable looks as follows Allowance for Doubtful Accounts Category Amount Estimated Uncollectible 30,000 Current $550,000 2 1 30 days past due $80,000 20 31 90 days past due $30,000 30 91 120 days past due $15,000 80 Provide the journal entries Dyson made to record the following transactions 2023 credit sales of $3,100,000 b Collection of $3,000,000 on prior credit sales c Write off of $25,000 receivables d Recoveries of $5,000 e Adjusting entry to record 2023 bad debt expense (assume Dyson uses the A R Aging method to estimate future bad debts) 2 What is Accounts Receivable, net on Dysons Dec 31, 2023 Balance Sheet 3 What is Bad Debt Expense on Dysons 2023 Income Statement Part B Accounts Receivable Financial Statement Inferences Use Verizons financial statements to answer the following questions What were Verizons gross accounts receivable, net accounts receivable, and allowance for doubtful accounts as of December 31, 2022 and December 31, 2021 How much bad debt expense did Verizon record in 2022 and 2021 As of Dec 31, 2022 As of Dec 31, 2021 Gross Accounts Receivable Allowance for Doubtful Accounts Net Accounts Receivable For the year ended Dec 31, 2022 For the year ended Dec 31, 2021 Bad Debt Expense 2 What percent of receivables did Verizon reserve for at the end of 2022 and 2021 As of Dec 31, 2022 As of Dec 31, 2021 Percent of Receivables Reserved For 3 Calculate Verizons Days Receivable (i e , the average number of days the receivables were outstanding) for 2022 and 2021 2022 2021 Days Receivable Did Verizon collect its receivables faster in 2021 or in 2022 4 How many receivables did Verizon write off in 2022 and 2021 Hint To compute these amounts, you may want to create Verizons 2022 and 2021 Allowance for Doubtful Accounts t accounts Ignore recoveries in your analysis For the year ended Dec 31, 2022 For the year ended Dec 31, 2021 Bad Debt Write offs Thought Exercise (You do not need to provide a written answer to this question, but think about how you might answer it) Do you think Verizons Allowance for Doubtful Accounts as of December 31, 2022 is too high, too low, or about right How do the calculations you made above help you make this assessment

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Assume that Dyson Repair has the following balances as of Jan 1, 2023: Accounts Receivable Accounts Receivable (gross) 600,000 600,000 Allowance for Doubtful Accounts 30,000

Assume that Dyson Repair has the following balances as of Jan 1, 2023:	Accounts Receivable
Accounts Receivable (gross)	600,000	600,000
Allowance for Doubtful Accounts	30,000
During 2023, Dyson had credit sales of $3,100,000 and collected $3,000,000 on prior credit sales. Dysons policy is to write off receivables that are more than 120 days past due. During 2023, Dyson wrote off $25,000 of its receivables and recovered a $5,000 receivable that it had previously written off. At December 31, 2023, an aging of Dysons accounts receivable looks as follows:


Allowance for Doubtful Accounts
Category	Amount	% Estimated Uncollectible	30,000
Current	$550,000	2%
1-30 days past due	$80,000	20%
31-90 days past due	$30,000	30%
91-120 days past due	$15,000	80%

Provide the journal entries Dyson made to record the following transactions
1. 2023 credit sales of $3,100,000

b. Collection of $3,000,000 on prior credit sales

c. Write off of $25,000 receivables

d. Recoveries of $5,000

e. Adjusting entry to record 2023 bad debt expense (assume Dyson uses the A/R Aging method to estimate future bad debts)

2. What is Accounts Receivable, net on Dysons Dec. 31, 2023 Balance Sheet?

3. What is Bad Debt Expense on Dysons 2023 Income Statement?

Part B Accounts Receivable Financial Statement Inferences

Use Verizons financial statements to answer the following questions.

What were Verizons gross accounts receivable, net accounts receivable, and allowance for doubtful accounts as of December 31, 2022 and December 31, 2021? How much bad debt expense did Verizon record in 2022 and 2021?

	As of Dec 31, 2022	As of Dec 31, 2021
Gross Accounts Receivable
Allowance for Doubtful Accounts
Net Accounts Receivable

	For the year ended Dec 31, 2022	For the year ended Dec 31, 2021
Bad Debt Expense

2. What percent of receivables did Verizon reserve for at the end of 2022 and 2021?

	As of Dec 31, 2022	As of Dec 31, 2021
Percent of Receivables Reserved For

3. Calculate Verizons Days Receivable (i.e., the average number of days the receivables were outstanding) for 2022 and 2021.

	2022	2021
Days Receivable

Did Verizon collect its receivables faster in 2021 or in 2022?

4. How many receivables did Verizon write off in 2022 and 2021?

Hint: To compute these amounts, you may want to create Verizons 2022 and 2021 Allowance for Doubtful Accounts t-accounts. Ignore recoveries in your analysis.

	For the year ended Dec 31, 2022	For the year ended Dec 31, 2021
Bad Debt Write-offs

Thought Exercise (You do not need to provide a written answer to this question, but think about how you might answer it): Do you think Verizons Allowance for Doubtful Accounts as of December 31, 2022 is too high, too low, or about right? How do the calculations you made above help you make this assessment?