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CL Co. manufactures and sells plumbing fixtures for homes & businesses. All of its sales are made on credit to wholesale distributors. Information for CL

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CL Co. manufactures and sells plumbing fixtures for homes & businesses. All of its sales are made on credit to wholesale distributors. Information for CL Co. for the current year is as follows: Total credit sales Accounts receivable at December 31 $990,000 $460,000 Assume that CL Co. estimates its bad debts based on an aging analysis of its year-end acadunts receivable, which indicates that a provision for uncollectible accounts of $35,000 is required: If there is a debit balance of $6,700 in its allowance for doubtful accounts on December 31, before adjustment, 1. What amount will the company report on its income statement as bad debts expense? Bad debt expenses li What amount will it report on its balance sheet as the net value of its accounts receivable? Assume that CL Co. estimates its bad debts based on an aging analysis of its year-end accounts receivable, which indicates that a provision for uncollectible accounts of $35,000 is required: there is a debit balance of $6,700 in its allowance for doubtful accounts on December 31, before adjustment, 1. What amount will the company report on its income statement as bad debts expense? Bad debt expense $ ii. What amount will it report on its balance sheet as the net value of its accounts receivable? Net accounts receivable $ e Textbook and Media Assume that CL Co. estimates its bad debts based on an aging analysis of its year-end accounts receivable, which indicates that a provision for uncollectible accounts of $35,000 is required: If there is a $6,700 credit balance in the allowance for doubtful accounts on December 31, before adjustment, i. What amount will the company report on its income statement as bad debts expense? Bad debt expense $ What amount will it report on its balance sheet as the net value of its accounts receivable? Net accounts receivable $ e Textbook and Media For this next part assume instead that CL Co. estimates its bad debts expense at 4% of credit sales: If there is a debit balance of $6,700 in its allowance for doubtful accounts on December 31, before adjustment 1 What amount will the company report on its income statement as bad debts expense? Bad debt expense $ ii. What amount will it report on its balance sheet as the net value of its accounts receivable? Net accounts receivables e Textbook and Media 0 For this next part assume instead that CL Co. estimates its bad debts expense at 4% of credit sales: If there is a $6,700 credit balance in the allowance for doubtful accounts on December 31, before adjustment, 1. What amount will the company report on its income statement as bad debts expense? Bad debt expense $ Hi What amount will it report on its balance sheet as the net value of its accounts receivable? Net accounts receivables e Textbook and Media

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