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P7.2 (LO3) 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

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P7.2 (LO3) 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 S53,000 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 Amounts estimated to be uncollectible $ 180,000 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, 20207 3. Shore Co. provides for doubtful accounts based on 4% of gross accounts receivable. The following data are available for 2020. Credit sales during 2020 $4,400,000 Bad debt expense 57,000 Allowance for doubtful accounts 1/1/20 17,000 Collection of accounts written off in prior years (customer credit was reestablished) 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? 4. At the end of its first year of operations, December 31, 2020, Darden Inc. reported the following information. Accounts receivable, net of allowance for doubtful accounts $950,000 Customer accounts written off as uncollectible during 2020 24.000 Bad debt expense for 2020 84,000 What should be the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts? 5. The following accounts were taken from Bullock Inc.'s trial balance at December 31, 2020. Debit Credit $750,000 Net credit sales Allowance for doubtful accounts Accounts receivable $ 14,000 310,000 If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2020

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