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P7.2 (LO 3) Groupwork (Bad-Debt Reporting) The following are a series of unrelated situations. 1. Halen Company's unadjusted trial balance at December 31, 2020, included

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P7.2 (LO 3) Groupwork (Bad-Debt Reporting) The following are a series of unrelated situations. 1. Halen Company's unadjusted trial balance at December 31, 2020, included the following accounts. Debit Credit Accounts receivable $53,000 Allowance for doubtful accounts 4,000 Net sales $1,200,000 Halen Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2020. 2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2020, disclosed the following. $ 180,000 Amounts estimated to be uncollectible Accounts receivable 1,750,000 Allowance for doubtful accounts (per books) 125,000 What is the net amount expected to be collected of Stuart's receivables at December 31, 2020? 3. Shore Co. provides for doubtful accounts based on 4% of gross accounts receivable, The following data are available for 2020. CHAPTER 7 Cash and Receivables $4,400,000 Credit sales during 2020 Bad debt expense Allowance for doubtful accounts 1/1/20 Collection of accounts written off in prior years (customer credit was reestablished) 57,000 17,000 8,000 Customer accounts written off as uncollectible during 2020 30,000 What is the balance in Allowance for Doubtful Accounts at December 31, 2020

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