Crystal Lights Company manufactures and sells light fixtures for homes, businesses, and institutions. All of its sales are made on credit to wholesale distributors. Information for Crystal Lights for the current year follows:

Total credit sales		$3,514,000
Accounts receivable at December 31 (after writing off uncollectible accounts)		476,000

Assume that Crystal Lights estimates its bad debts based on an aging analysis of its year-end accounts receivable, which indicates that a provision for uncollectible accounts of $37,200 is required.

If there is a debit balance of $7,400 in its Allowance for Doubtful Accounts on December 31, before adjustment:

i.	What amount will the company report on its statement of income as bad debts expense?

Bad debts expense

$Enter a dollar amount.

ii.	What amount will it report on its statement of financial position as the net value of its accounts receivable?

Accounts receivable

$Enter a dollar amount.

If there is a $7,400 credit balance in the Allowance for Doubtful Accounts on December 31, before adjustment:

i.	What amount will the company report on its statement of income as bad debts expense?

Bad debts expense

$Enter a dollar amount.

ii.	What amount will it report on its statement of financial position as the net value of its accounts receivable?

Accounts receivable

$Enter a dollar amount.

Assume that Crystal Lights decides to estimate its bad debts expense at 1% of credit sales. If there is a $7,400 credit balance in the Allowance for Doubtful Accounts on December 31, before adjustment:

i.	What amount will the company report on its statement of income as bad debts expense?

Bad debts expense

$Enter a dollar amount.

ii.	What amount will it report on its statement of financial position as the net value of its accounts receivable?

Accounts receivable

$Enter a dollar amount.

Assume that Crystal Lights uses the direct writeoff method of accounting for bad debts and that the company wrote off accounts totalling $17,900 as uncollectible during the year. What amount will the company report on its statement of income as bad debts expense?

Bad debts expense

$Enter a dollar amount.

Assume that Crystal Lights uses the direct writeoff method of accounting for bad debts and that the company wrote off accounts totalling $17,900 as uncollectible during the year. What amount will it report on its statement of financial position as the net value of its accounts receivable?

Accounts receivable

$Enter a dollar amount.