Problem 7-2

Presented below are a series of unrelated situations. Answer the questions relating to each of the five independent situations as requested. 1. Coronado Companys unadjusted trial balance at December 31, 2017, included the following accounts.

		Debit		Credit
Accounts receivable		$50,300
Allowance for doubtful accounts		$5,300
Net sales				$1,229,400

Coronado Company estimates uncollectible accounts to be 5% of gross accounts receivable. Determine its bad debt expense for 2017.

Bad debt expense for 2017

$ 2. An analysis and aging of Whispering Corp. accounts receivable at December 31, 2017, disclosed the following.

Amounts estimated to be uncollectible		$ 180,530
Accounts receivable		1,762,300
Allowance for doubtful accounts (per books)		125,470

What is the net realizable value of Whisperings receivables at December 31, 2017?

The net realizable value

$

3. Metlock Co. provides for doubtful accounts based on 3% of gross accounts receivable, The following data are available for 2017.

Credit sales during 2017		$1,746,600
Bad debt expense		58,920
Allowance for doubtful accounts 1/1/17		17,720
Collection of accounts written off in prior years (customer credit was reestablished)		8,430
Customer accounts written off as uncollectible during 2017		32,220

What is the balance in Allowance for Doubtful Accounts at December 31, 2017?

The balance in Allowance for Doubtful Accounts

$

4. At the end of its first year of operations, December 31, 2017, Bonita Inc. reported the following information.

Accounts receivable, net of allowance for doubtful accounts		$921,600
Customer accounts written off as uncollectible during 2017		24,690
Bad debt expense for 2017		84,000

What should be the balance in accounts receivable at December 31, 2017, before subtracting the allowance for doubtful accounts?

Accounts receivable, before deducting allowance for doubtful accounts

$ 5. The following accounts were taken from Windsor Inc.s trial balance at December 31, 2017.

		Debit		Credit
Net credit sales				$744,000
Allowance for doubtful accounts		$12,910
Accounts receivable		288,700

If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2017.

The bad debt expense, as adjusted

$