Part 1.

Assume the Murtha Company reported the following adjusted account balances at year-end.

	2016	2015
Accounts Receivable	$1,570,200	$1,220,920
Allowance for Doubtful Accounts	(80,000)	(65,500)
Accounts Receivable, Net	$1,490,200	$1,155,420

Assume the company recorded no write-offs or recoveries during 2016. What was the amount of Bad Debt Expense reported in 2016?

A : $29,000. B : $65,500. C : $80,000. D :$14,500.

Part. 2

XYZ Corp. uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of XYZ Corp.:

Cash sales	$270,000
Credit sales	730,000
Total sales	1,000,000
Credit balance in the Allowance for Doubtful Accounts	8,000
Bad debt loss rate	3%

What is the estimate of bad debt expense?

A: $21,900 B : $22,000 C : $29,900 D : $30,000

Part 3.

Harney Inc. uses the percentage of credit sales method of estimating doubtful accounts. The Allowance for Doubtful Accounts has an unadjusted credit balance of $4,500 and the company had $230,000 of net credit sales during the period. Harney has experienced bad debt losses of 3% of credit sales in prior periods. After making the adjusting entry for estimated bad debts, what is the ending balance in the Allowance for Doubtful Accounts account?

A : $9,000. B : $6,900. C : $11,400. D : $2,400.

Part 4

Using the aging method of accounts receivable method, $6,100 of the companys Accounts Receivable are estimated to be uncollectible. At the end of the year, the balance of Accounts Receivable is $111,000 and the unadjusted credit balance of the Allowance for Doubtful Accounts is $720. Credit sales during the year totaled $172,000. What is the current years Bad Debt Expense?

A; $8,100. B: $8,820. C:$6,100. D:$5,380.

Part 5

Wechsler Company uses the aging of accounts receivable method. The company performed an aging of accounts receivable on December 31 and gathered the following information:

Accounts receivable	$550,000
Unadjusted Credit balance in Allowance for Doubtful Accounts	40,000
Estimated Uncollectible Accounts Receivable	49,000

What is the amount of Accounts Receivable, Net that will be reported on the balance sheet at December 31?

A : $501,000 B: $541,000 C: $510,000 D: $452,000