Description for Accounts Receivable: ()

The balance of Accounts Receivable is $560,000 at 12/31/2019. The Allowance for Doubtful

accounts has a credit balance of $480 on 12/30/2019. Total sales for 2019 were

&1,688,000 and the Cash sales were $142,000. Information for estimating bad debt expense is

presented below:

Situation A: The company uses the aging-of-accounts-receivable method. A partial aging of

Accounts Receivable is presented below:

Days Outstanding

Amount

Percentage Uncollectible

0-30 days

$300,000

1%

31-60 days

100,000

5%

61-90 days

80.000

10%

91-120 days

50,000

25%

1000:0052 16)

000 p022 1a1

Over 120 days

20,000

50%

Situation B: The company uses the percentage-of-sales method. Historical data indicates that

Approximately 3.5% of the credit sales are uncollectible.

Question 10: In situation A what is the amount of bad debt expense that should be recognized in

2019? (4 pts)

(a) $39.500

(b) $39,020

(c) $39,980

(d) $37.540

Same facts as previous question

Question 11: In situation A what is the amount of the ending balance in the Allowance for Doubtful

accounts at 12/31/2019? ()

(a) $39,980

(b) $39,500

(c) $39.020

(d) $37,540

Same facts as previous question

Question 12: In situation B, what is the ending balance in Bad Debt expense at 12/31/2019? ()

(a) $54,110

(b) $56,740

(c) $59,080

(d) $50,820

Same facts as previous question

Question 13: In situation B, what is the ending balance in Allowance for Doubtful Accounts at

12/31/2019? ()

(a) $54,110

(b) $52,820

(c) $54,590

(d) $53,780