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Tony's Auto Parts has a December 31, 2020 year-end. The unadjusted trial balance included the following items: Credit Account Accounts Receivable (AR) Allowance for Doubtful
Tony's Auto Parts has a December 31, 2020 year-end. The unadjusted trial balance included the following items: Credit Account Accounts Receivable (AR) Allowance for Doubtful Accounts (AFDA) Sales ($2,750,000 cash sales) Debit $2,820,000 $48,000 $10,190,000 In the year, the company had returns of $60,000, half of which were due to credit sales. REQUIRED: PART 1 Blank 1) What would be the Bad Debts Expense recorded at Dec 31 2020 if bad debts are estimated to be 3% of credit sales? Blank 2) What would be the ending balance on Dec 31 2020 in the AFDA account, given the above adjustment? Utts are esumated to be 3% of credit sales? Blank 2) What would be the ending balance on Dec 31 2020 in the AFDA account, given the above adjustment? PART 2 Blank 3) What would be the Bad Debts Expense recorded at Dec 31 2020 if 4% of outstanding AR are expected to become uncollectable at that date? Blank 4) What would be the ending balance on Dec 31 2020 in the AFDA account, given the above adjustment? Blank # 1 Blank # 2 Blank #3 Blank # 4
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