Homework Assignment 4 Due as pof file upload on Blackboard by 5:00 pm on Monday Feb 26 Ho Company's balance sheet dated Dec 31, 2012 showed Accounts Receivable of $30,000 and Allowa for BD/DA of $2,500, while its balance sheet dated Dec 31, 2013 showed Accounts Receivable of $45,000 and Allowance for BD/DA of $3,500. Ho Company did not report any unearned revenue on either balance sheet. Ho Company's income statement for 2013 reported Sales Revenue of $250,000 and bad debt expense of $4,000. Determine the following: (a) Ho Company's write-off of Accounts Receivable during 2013 (b) Ho Company's cash collections from customers during 2013 Hint: Absent unearned revenue, we have two relationships: Cash Collections from customers Cash sales + Cash collections on account Sales Revenue = Cash Sales + Credit Sales You may assume any split-up of sales revenue between cash and credit sales. Your final answer will not depend on your assumption. (c) After completing (b) above, verify that the answer to (b) can also be obtained by using the following relationship Cash collections from customers [Sales Revenue-Bad Debt Expense] Increase in Net Accounts Receivable Note that what is contained in the square parentheses above is incorporated in Net Income. So wher preparing the cash flow statement (to be introduced later), the only adjustment that is necessary is fo the change in Net Accounts Receivable