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Homework answers / question archive / Question 3 - Chapter 7, Learning Objective 3 - 5 points each, total of 25 points A
Question 3 - Chapter 7, Learning Objective 3 - 5 points each, total of 25 points A. Wellington Corp. has outstanding accounts receivable totaling $5.2 million as of December 31 and sales on credit during the year of $34 million. There is also a beginning credit balance of $21,000 in the allowance for doubtful accounts, and write offs during the year of $42,000. If the company estimates that 4% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? B. At the close of its first year of operations, December 31, 2020, Ming Company had accounts receivable of $3,220,000, after deducting the related allowance for doubtful accounts. During 2020, the company had charges to bad debt expense of $347,000 and wrote off, as uncollectible, accounts receivable of $185,000. What should the company report on its balance sheet at December 31, 2020, as accounts receivable before the allowance for doubtful accounts? C. During the year, Kiner Company made an entry to write off a $17,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $235,000 and the balance in the allowance account was $46,000. What was the accounts receivable amount expected to be collected after the write-off entry? D. Vasguez Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $60,000. During 2020, it wrote off $42,800 of accounts and collected $19,100 on accounts previously written off. The balance in Accounts Receivable was $678,000 at 1/1 and $888,000 at 12/31. At 12/31/20, Vasguez estimates that 7% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2020? E. McGlone Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $50,000. During 2020, it wrote off $34,900 of accounts and collected $17,400 on accounts previously written off. The balance in Accounts Receivable was $878,000 at 1/1 and $1,025,000 at 12/31. At 12/31/20, McGlone estimates that 8% of accounts receivable will prove to be uncollectible. What should McGlone report as its Allowance for Doubtful Accounts at 12/31/20?
