On January 1,

20XX, Blue

Moon Company had a $12,000 balance in its

Accounts Receivable Account and a credit balance of $4,000 in its ADA

account. During

20XX,

Credit sales were $250,000 and collections from

customers on account, amounted to $180,000. In addition during

20XX,

$7,000 of Accounts Receivable were written off and $ 1,000 of

previously written off Accounts Receivable were collected

.

Determine Bad Debt Expense and Net Realizable Value if:

1.

Uncollectible Accounts are estimated at 4 % of sales.

OR

2.

Uncollectible Accounts are estimated at 6% of Accounts

Receivable.