No. 4 (Bad-Debt Reporting) Presented below are a series of unrelated situations. 1. Halen Company's unadjusted trial balance at December 31, 2012, included the following accounts. Debit Credit 1,200,000 Allowance for doubtful accounts 4,000 Net sales Halen Company estimates its bad debt expense to be 1% of net sales. Determine its bad debt expense for 2012. 2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2012, disclosed the following. Amounts estimated to be uncollectible Accounts receivable Allowance for doubtful accounts (per books) $ 180,000 1,750,000 125,000 What is the net realizable value of Stuart's receivables at December 31, 2012? 3. Shore Co. provides for doubtful accounts based on 3% of credit sales. The following data are available for 2012. Credit sales during 2012 Allowance for doubtful accounts 1/1/12 Collection of accounts written off in prior years(customer credit was reestablished) $2,400,000 17,000 8,000 30,000 Customer accounts written off as uncollectible during 2012 What is the balance in Allowance for Doubtful Accounts at December 31, 2012? 4. At the end of its first year of operations, December 31, 2012, Darden Inc. reported the following information. Accounts receivable, net of allowance for doubtful accounts $950,000 Customer accounts written off as uncollectible during 2012 Bad debt expense for 2012 24,000 4,000 What should be the balance in accounts receivable at December 31, 2012, before subtracting the allowance for doubtful accounts? 5. The following accounts were taken from Bullock Inc.'s trial balance at December 31, 2012. Net credit sales Debit Credit $750,000 Allowance for doubtful accounts $ 14,000 Accounts receivable 310,000 If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2012. Instructions Answer the questions relating to each of the five independent situations as requested