QUESTION 54 Neal Company had the following information relating to sales in 2020: Accounts Receivable 12/31/2020.............. ..$8,000 Allowance for doubtful accounts 01/01/2020............ .2,750 Uncollectible accounts written off during 2020. .1,550 Credit sales during 2020....... .75,000 Allowance for doubtful accounts are determined by the percent-of-sales method to be 2% of credit sales. How much is bad-debt expense for 2020? CA $1,550 OB $1,500 OC$3,050 D$1.200 Neal Company had the following information relating to sales in 2020: Accounts Receivable 12/31/2020..... .$8,000 Allowance for doubtful accounts 01/01/2020. ..2,750 Uncollectible accounts written off during 2020. 1,550 Credit sales during 2020................ .75,000 Allowance for doubtful accounts are determined by the percent-of-sales method to be 2% of credit sales. What is the adjusted balance in the Allowance for Doubtful Accounts (ADA) at the end of 2020? A $2,750 CB $1,200 C$4,250 D$2,700 Neal Company had the following information relating to sales in 2020: Accounts Receivable 12/31/2020................. .........$18,000 Allowance for doubtful accounts 01/01/2020........ 2,750 Uncollectible accounts (bad-debt) written off during 2020................1,550 Credit sales during 2020.......... .75,000 Allowance for doubtful accounts is determined by the percent-of- receivables method and the desired balance of the Allowance for Doubtful Accounts (ADA) at the end of 2020 is estimated to be 20% of the accounts receivable balance on 12/31/2020. How much is bad-debt expense for 2020? [Hint: Bad-debt expense = Bad-debt plus new allowance minus old allowance] $3,600 $2,400 $6,350 $600 Neal Company had the following information relating to sales in 2020: Accounts Receivable 12/31/2020................ $18,000 Allowance for doubtful accounts 01/01/2020............ .2,750 Uncollectible accounts (bad-debt) written off during 2020...............1,550 Credit sales during 2020.......... .75,000 Allowance for doubtful accounts is determined by the percent-of- receivables method and the desired balance of the Allowance for Doubtful Accounts (ADA) at the end of 2020 is estimated to be 20% of the accounts receivable balance on 12/31/2020. What is the balance of the Allowance for Doubtful Accounts (ADA) at the end of 2020? A $4,800 B. $1,200 C1,200 OD $3,600 B Neal Company had the following information relating to sales in 2020: Accounts Receivable 12/31/2020.......... Allowance for doubtful accounts 01/01/2020........ Uncollectible accounts (bad-debt) written off during 2020........ Credit sales during 2020........... $18,000 2,750 .1,550 ..75,000 Allowance for doubtful accounts is determined by the percent-of-receivables method and the desired balance of the Allowance for Doubtful Accounts (ADA) at the end of 2020 is estimated to be 20% of the accounts receivable balance on 12/31/2020. What is the net realizable value (NRV) of accounts receivable at the end of 2020? $14,400 $12,850 $87,850 $89,400
