Prior to the year-end adjustment to record bad debt expense for 2019 the general ledger of Stickler Company included the following accounts and balances:
Cash collections on accounts receivable during 2019 amounted to $450,000.Sales revenue during 2019 amounted to $800,000,of which 75% was on credit,and it was estimated that 2% of these credit sales made in 2019 would ultimately become uncollectible.
A.Calculate the bad debt expense for 2019.
B.Determine the adjusted 2019 year-end balance of the allowance for doubtful accounts.
C.Determine the net realizable value of accounts receivable for the December 31,2019 balance sheet.

Question

Prior to the year-end adjustment to record bad debt expense for 2019 the general ledger of Stickler Company included the following accounts and balances:
  Cash collections on accounts receivable during 2019 amounted to $450,000.Sales revenue during 2019 amounted to $800,000,of which 75% was on credit,and it was estimated that 2% of these credit sales made in 2019 would ultimately become uncollectible.
A.Calculate the bad debt expense for 2019.
B.Determine the adjusted 2019 year-end balance of the allowance for doubtful accounts.
C.Determine the net realizable value of accounts receivable for the December 31,2019 balance sheet.

Quizplus · Accepted Answer

The Answer of Prior to the year-end adjustment to record bad debt expense for 2019 the general ledger of Stickler Company included the following accounts and balances:
  Cash collections on accounts receivable during 2019 amounted to $450,000.Sales revenue during 2019 amounted to $800,000,of which 75% was on credit,and it was estimated that 2% of these credit sales made in 2019 would ultimately become uncollectible.
A.Calculate the bad debt expense for 2019.
B.Determine the adjusted 2019 year-end balance of the allowance for doubtful accounts.
C.Determine the net realizable value of accounts receivable for the December 31,2019 balance sheet.

Prior to the Year-End Adjustment to Record Bad Debt Expense