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Use the following information to answer the next 3 questions. Desert Company reports the following financial information before adjustments: Credit Debit $150,000 $5,000 Accounts Receivable
Use the following information to answer the next 3 questions. Desert Company reports the following financial information before adjustments: Credit Debit $150,000 $5,000 Accounts Receivable Allowance for Doubtful Acct. Sales (all on account) Sales Returns/Allowance $400,000 $50,000 The company estimates 5% of A/R will be uncollectible. Using the Balance Sheet Allowance Method, calculate the following: (1) What is the ending balance in the Allowance for Doubtful Accounts Account? 12500 (2) What amount is recorded for Bad Debt Expense? 12500 (3) What is the Net Realizable Value of the Accounts Receivable account after the Bad Debt Expense adjustment? 137500
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