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The trial balance before adjustment of Risen Company for 2014 reports the following balances: Cr. Dr. $163,000 $ 1,260 500,000 Accounts receivable Allowance for doubtful
The trial balance before adjustment of Risen Company for 2014 reports the following balances: Cr. Dr. $163,000 $ 1,260 500,000 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances 26,000 15. Assume that Risen Company estimates doubtful accounts to be 10% of gross accounts receivable Bad Debt Expense for 2014 would be: a. $16,300 b. $13,780 c. $17,560 d. $15,040 16. The following accounts were taken from Robot Company's unadjusted trial balance at December 31, 2014: Credit Debit $1,000,000 Accounts Receivable Allowance for Doubtful Accounts Net Credit Sales 8,000 $3,000,000 Robot estimates that 3% of gross accounts receivable will become uncollectible. After adjustment at December 31, 2014, the allowance for doubtful accounts should have a credit balance of a $90,000 b. $82,000 c. $38,000 d. $30,000 17. When a specific customer's account receivable is written off as uncollectible, what will be the effect on net income under each of the following methods of recognizing bad debt expense? doo Allowance Decreased None None Decreased Direct Write-Off Decreased Decreased None None
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