SCENARIO #2:

12/31/2019: At the end of the first year ofoperations,YolandiCompanyhad $900,000 in sales and accounts receivable of $350,000.XYZ's management has estimated that $9,000 in accounts receivable would be uncollectible.

For the end of 2019, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts:

Bad debt expense:

Allowance for doubtful accounts:

For the end of 2019, what is the company's net realizable value?

12/31/2020: During 2020, $10,000 in accounts receivable were written off.At the end of the second year ofoperations,YolandiCompanyhad $1,000,000 in sales and accounts receivable of $400,000.XYZ's management has estimated that $17,000 in accounts receivable would be uncollectible.

For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts:

Bad debt expense:

Allowance for doubtful accounts:

For the end of 2020, what is the company's net realizable value?