Chelser Corporation performed an analysis and an aging of its accounts receivable at December $31,2010,$ which disclosed the

following:

Accounts receivable balance $,$$$100,000$

Accounts deemed uncollectible $7,400$

The net realizable value of the accounts receivable at December $31$ is:

a$.$ $$87,600.$

b$.$ $$92,600.$

c$.$ $$95,000.$

d$.$ $$97,600.$

Use the following data for questions $17$&$18$ :

Data below are reported for $2010$ :

Sales, cash

$$200,000$

Sales, credit

Accounts Receivable, January $1$

Accounts Receivable, December $31$

$500,000$

$4,600$

The journal entry to record bad debt expense for the period and to adjust the allowance account

is to be based on an estimate of $1\%$ of credit sales. The entry to record the uncollectible accounts

expense for $2010$ would include a debit to the Bad Debt Expense account for:

a$.$ $$7,200.$

b$.$ $$5,600,$

c$.$ $$4,400.$

d$.$ $$5,000.$

The journal entry to record bad debt expense for the period and to adjust the allowance account

is to be based on an aging analysis of accounts receivable. The aging analysis of accounts

receivable at December $31,2010,$ reveals that $$5,200$ of existing accounts receivable are

estimated to be uncollectible. The entry to record the uncollectible accounts expense for $2010$ will

involve a debit to the Bad Debt Expense account for:

a$.$ $$9,800.$

b$.$ $$5,800.$

c$.$ $$5,200.$

d$.$ $$4,600.$