On April 30, 2020, Windy Mountain Party Planners (WMPP) had a $38000 balance in Accounts Receivable and a $3100 credit balance in Allowance for Uncollectible Accounts During May WMPP made credit sales of 3573.000. May collections on account were $58000. writeioffs of uncollectible receivables totalled $2,600. and an account of $1.400 was recovered Bad debt expense is estimated to be $6,570 Requirements 1. Determining bad debt expense by uSing the allowance method is management's estimate of uncollectible accounts and not an accurate measurement Why not wait until a company finds out which customers can't pay and write the accounts receivable off as they occur? 2. If the allowance method is not used to estimate uncollectible accounts. what effect would this have on accounts receivable (balance sheet) and bad debt expense (income statement)? Requirement 1. Determining ad debt expense by using he allowance method is management's estimate of uncollectible accounts and not an accurate measurement. Why not wait until a company finds out which customers can't pay and write the accounts receiva |e off as they occur? By using the allowance method. the V account is reported at the amount the company expects to collect. which is the most relevant and faithful representation of V as of the balance sheet date Also, V are properly recognized in the period in which they were V that is in the same period in which the related sales took place Requirement 2. lfthe allowance method is not used to estimate uncollectible accounts, what effect would this have on accounts receivable (balance sheet) and bad debt expense {income statement)? (Leave any unused cells blank] Calculate the company's alance of accounts receivable by entering the beginning balance and the adiusting entries in the following T-account Post the beginning balance first and then post the adjustments Accounts Receivable Beg Bal 33000 CreditSales 3100 End Bal What balance ofaccounts receivable does WMPP repor'? S What amount of bad debt expense would e reported? $ On January 31, 2020, Enderby Sports Cars issued 5-year, 9% bonds with a face value of $150,000. The bonds were issued at 90, and pay interest on January 31 and July 31. Enderby amortizes bonds by the straight-line method. Requirement Record (a) issuance of the bonds on January 31, (b) the semi-annual interest payment and discount amortization on July 31, and (c) the interest accrual and discount amortization on December 31. .. . January 31 Discount on Bonds Payable $15,000 Bonds Payable $150,000 b. Record the semi-annual interest payment and discount amortization on July 31. (Round your answers to the nearest whole number.) Date Accounts Debit Credit July 31 Interest Expense Cash Discount on Bonds Payable c. Record the interest accrual and discount amortization on December 31. (Round your answers to the nearest whole number.) Date Accounts Debit Credit December 31