1. Q 11 13

   On January 1, 2021, Psyworld Company had accounts receivable of $16,000 and allowance for bad debts had a credit balance of $1,000.

   During 2021, Psyworld recognized sales revenue of $370,000 ($350,000 on account, $20,000 for cash) and collected $353,000 on account. In addition, Psyworld wrote off $700 uncollectible receivables.

   The analysis of accounts receivable on December 31, 2021 shows the following results:

   Age of Receivables	1-30 Days	31-60 Days	Over 61 Days
   Accounts Receivables	$9,000	$1,800	?
   Estimated percent uncollectible	1%	2%	50%

   Psyworld estimates bad debts on December 31, 2021.

   11. If Psyworld estimates bad debts as 0.5% of credit sales, what is the net realizable value of accounts receivable on December 31, 2021?

   		$10,150
   		$10,250
   		$10,350
   		$10,450

2. 12. If Psyworld estimates bad debts as 3% of accounts receivable, what is the bad debt expense for 2021?

   		$69.00
   		$70.10
   		$71.20
   		$72.30

3. 13. If Psyworld adopts aging-of-receivables method to estimate bad debts, what is the allowance for bad debts on December 31, 2021?

   		$846
   		$856
   		$866
   		$876