Abundant ReturnsThis company sells its merchandise only on credit. The following data are available for the year ended December 31.
Sales$411,000
Sales returns and allowances12,000
Accounts receivable at January 189,000
Allowance for doubtful accounts at January 14,100
Cash collections during the year385,100
Accounts written off as uncollected during the year3,600
Refer to Abundant Returns. Assume that the company estimates bad debts using the aging method. The aging schedule indicates that $11,500 of the end of the year Accounts Receivable will be uncollected.
A)What amount will the company recognize as bad debt expense for the year? B)If the ending balance of Accounts Receivables is $65,200, what is the net realizable value of Accounts Receivable reported on December 31?
What will be an ideal response?
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