Information for the Hooper Company is as follows:
(1)What is the amount of uncollectible account expense for 2018 if the company uses the Percentage of Sales method and 2% of credit sales are deemed uncollectible?
(2)What is the amount of uncollectible account expense if the company uses the balance sheet approach and estimates $2,200 as uncollectible in 2018?
(3)What is the net realizable value of accounts receivable if the company uses the balance sheet approach?
(4)If the company uses the balance sheet approach and writes-off a receivable of $450 what will be the net realizable value of accounts receivable after the write off?

Question

Information for the Hooper Company is as follows:
  (1)What is the amount of uncollectible account expense for 2018 if the company uses the Percentage of Sales method and 2% of credit sales are deemed uncollectible?
(2)What is the amount of uncollectible account expense if the company uses the balance sheet approach and estimates $2,200 as uncollectible in 2018?
(3)What is the net realizable value of accounts receivable if the company uses the balance sheet approach?
(4)If the company uses the balance sheet approach and writes-off a receivable of $450 what will be the net realizable value of accounts receivable after the write off?

Quizplus · Accepted Answer

The Answer of Information for the Hooper Company is as follows:
  (1)What is the amount of uncollectible account expense for 2018 if the company uses the Percentage of Sales method and 2% of credit sales are deemed uncollectible?
(2)What is the amount of uncollectible account expense if the company uses the balance sheet approach and estimates $2,200 as uncollectible in 2018?
(3)What is the net realizable value of accounts receivable if the company uses the balance sheet approach?
(4)If the company uses the balance sheet approach and writes-off a receivable of $450 what will be the net realizable value of accounts receivable after the write off?

Information for the Hooper Company Is as Follows