Chapter 8 - Exercise 1 Task Team: 29% On Dec 31, 2016, Rawda Company had accounts receivable of $750,000 and allowance for doubtful accounts that had a debit balance of $10,000. The company uses an aging schedule (aging method) to estimate its uncollectible accounts as shown in the following table: # of Days Outstanding Amounts Estimated % Uncollectible $ 200,000 31-60 200.000 4% 61-90 200,000 6% Over 90 150,000 Requirements: a. What is the required balance for the allowance of doubtful accounts on Dec 31, 2016? b. What is the net realizable value of the accounts receivable on Dec 31, 2016? c. If on May 1, 2017, one of the company's customer that owed the company $21.000 file bankruptcy, what is the balance of the allowance for doubtful accounts on May 1, 2017? d. If On July 31, 2017, the customer that filed a bankruptcy on May 1, 2017 came back and pl Radwda $15,000, what is the balance of the allowance for doubtful accounts on July 31, 201 Chapter 8 - Exercise 2 Task Team: On Dec 31, 2016, Riyadh Company had accounts: 1. Credit sales $2,500,000 2. Ending accounts receivable 800,000 3. Sales discousnts 120,000 4. Sales returns and allowances 280,000 5. Beginning accounts receivable 750,000 6. Allowance for doubtful accounts (credit) 12.000 7. The aging schedule (aging method) for the company's accounts receivable is shown in the following table: # of Days Outstanding Amounts Estimated % Uncollectible 0-30 $ 100,000 2% 31-60 300,000 61-90 300,000 6% Over 90 100.000 Requirements: a. If the compnay's use the percentage of net credit sales method (3%) to estimate its allowance for the doubtful accounts, answer the following two questions: What is the balance of the allowance for doubtful accounts on Dec 31, 2016? What is the bad debt expense that should be reported in the 2016 income statement? 4% 8% b. If the compnay's use the percentage of the aging method of accounts receivable to estimate its alloance for the doubtful accounts, what is the required balance for the the doubtful accounts on Dec 31, 2016? What is the balance of the allowance for doubtful accounts on Dec 31, 2016? What is the bad debt expense that should be reported in the 2016 income statement