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The following balances are taken from Gardenia Corporation adjusted balance sheet as of December 31, 2021 and 2020, respectively: Accounts receivable Allowance for doubtful accounts
The following balances are taken from Gardenia Corporation adjusted balance sheet as of December 31, 2021 and 2020, respectively: Accounts receivable Allowance for doubtful accounts Accounts receivable, net of allowance for doubtful accounts 12.31.2021 77,588 1,502 76,086 12.31.2020 65,598 1,576 64,022 Gardenia Corporation wrote off $504 of accounts receivable which were deemed uncollectible during fiscal year 2021. Gardenia Corporation reported net sales of $336,176 during fiscal year 2021, of which 3/4 were made on credit, and the rest for cash. Gardenia Corporation has always been using the aging method to estimate bad debt expense. Required: 1. Determine the amount of bad debt expense that Gardenia Corporation reported in fiscal year 2021. How much cash did Gardenia Corporation collect during fiscal year 2021 from customers who purchased products on credit? 2. 3. Did Gardenia over estimate or under estimate its 2021 bad debt? Explain. 1. The amount of bad debt expense that Gardenia Corporation reported in fiscal year 2021: (you can use the T-account template but are not required to). 2. How much cash did Gardenia Corporation collect during fiscal year 2021 from customers who purchased products on credit? (you may use the T-account template but are not required to) 3. Did Gardenia over estimate or under estimate its 2021 bad debt? Explain
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