If audited annual financial statements are prepared for the year ended on December 31st and the company has the following General

Ledger account balances after all adjusting journal entries have been recorded:

Sales $29,000 (of which 40% are credit sales still outstanding)

Sales returns and Allowances $1,000

Allowance for Doubtful Accounts $1,502

Bad Debt Expense is estimated as 4% of outstanding credit sales at period end

Advances to Shareholders and Directors $4,288

Long term Receivables $9,014

Miscellaneous Receivables $1,212

Notes Receivables $2,903 (Current Portion)

Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported on Decmber 31st? $

Required 2: Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st? $

Required 3: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st? $

Instructions: Use 2 decimal places and only type the number without signs except for negative numbers that are preceded by a minus

sign ".". If the right answer is 1070.39 you type "1070.39", it will not be reac[as correct if you type "1,070.39', "$1070.39" or any other

combination. If the right answer is negative 1070.39 you type "-1070.39"