Intermediate Accounting

Problem #1 Bad Debt Reporting (20 Points)

Answer the questions relating to each of the three independent situations as requested:

1.Scott Company provides for doubtful accounts based on 4% of credit sales. The following data are available for 2007:

What is the balance in the Allowance for Doubtful Accounts at December 31, 2007?

2.At the end of 2007, Scott Company reported the following information:

What should be the balance in accounts receivable at December 31, 2007, before subtracting the allowance for doubtful accounts?

Intermediate Accounting Problem #1 Bad Debt Reporting (20 Points) Answer the questions relating to each of the three independent situations as requested: 1.Scott Company provides for doubtful accounts based on 4% of credit sales. The following data are available for 2007: What is the balance in the Allowance for Doubtful Accounts at December 31, 2007? 2.At the end of 2007, Scott Company reported the following information: What should be the balance in accounts receivable at December 31, 2007, before subtracting the allowance for doubtful accounts