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Sunrise Inc. makes widgets, which they sell both for cash and on credit. The following information is provided related to their accounts receivable. Accounts Receivable,

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Sunrise Inc. makes widgets, which they sell both for cash and on credit. The following information is provided related to their accounts receivable. Accounts Receivable, gross beginning balance.... 402,000 Write-offs of accounts receivables..... .....36,000 Allowance for Doubtful Accounts, beginning balance ..............5,200 Overall historic bad debt loss rate.... ... 4% Credit Sales.. ... 1,950,000 Cash Collections....... ....1,765,000 Assume that Sunrise Inc uses the percent of credit sales method for determining bad debt expense. Problem 5 What is the ending balance in the allowance account? $55,800 $444,000 $47.200 Accounts Receivable, gross beginning balance............. 402,0001 Write-offs of accounts receivables.... ..36,000 Allowance for Doubtful Accounts, beginning balance .............5,200 Overall historic bad debt loss rate.... ...... 4% Credit Sales.... 1,950,000 Cash Collections...... ............... ...1,765,000 Assume that Sunrise Inc uses the percent of credit sales method for determining bad debt expense. Problem 6 What is the ending balance of accounts receivable, gross? $238,000 $551,000 $338,000 None of above Accounts Receivable, gross beginning balance.................. 402,000 Write-offs of accounts receivables...... ...36,000 Allowance for Doubtful Accounts, beginning balance ............5,200 Overall historic bad debt loss rate....... ... 4% Credit Sales.. 1,950,000 Cash Collections.... ...1,765,000 Assume that Sunrise Inc uses the percent of credit sales method for determining bad debt expense. Problem 7 How would accounts receivable be displayed on the balance sheet? Accounts Receivable, gross.... $438,000 Accounts Receivable, gross........ $577,000 Accounts Receivable, net...........$454,800 Accounts Receivable, net..............$503,800

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