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The following are a series of unrelated situations. Answer the questions relating to each of the...

The following are a series of unrelated situations. Answer the questions relating to each of the five independent situations

The following are a series of unrelated situations. Answer the questions relating to each of the five independent situations as requested. 1. Indigo Company's unadjusted trial balance at December 31, 2020, included the following accounts. Credit Accounts receivable Allowance for doubtful accounts Net sales Debit $48,600 4.470 $1,225,600 Indigo Company estimates its bad debt expense to be 6% of gross accounts receivable. Determine its bad debt expense for 2020. Bad debt expense for 2020 $ 2. An analysis and aging of Sweet Corp.accounts receivable at December 31, 2020, disclosed the following. Amounts estimated to be uncollectible Accounts receivable Allowance for doubtful accounts (per books) $ 181,700 1,782,500 128,600 What is the net amount expected to be collected of Sweet's receivables at December 31, 2020? Net realizable value $ 3. Pharoah Co. provides for doubtful accounts based on 4% of gross accounts receivable. The following data are available for 2020. Credit sales during 2020 Bad debt expense Allowance for doubtful accounts 1/1/20 Collection of accounts written off in prior years (customer credit was reestablished) Customer accounts written off as uncollectible during 2020 $2,873.400 57.280 17,520 8.020 28,220 What is the balance in Allowance for Doubtful Accounts at December 31, 2020? Allowance for doubtful accounts 12/31/20 $ 4. At the end of its first year of operations, December 31, 2020. Novak Inc. reported the following information. Accounts receivable, net of allowance for doubtful accounts $1,017,600 Customer accounts written off as uncollectible during 2020 22,390 Bad debt expense for 2020 85,030 What should be the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts? Accounts receivable, before deducting allowance for doubtful accounts $ 5. The following accounts were taken from Splish Inc's trial balance at December 31, 2020. Credit $691,500 Debit Net credit sales Allowance for doubtful accounts $13,150 Accounts receivable 316,600 If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2020. Bad debt expense, as adjusted $
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Answer 1
Indigo Amount $ Note
Gross Receivables         48,600.00 A
Bad Debt Expense % 6% B
Bad Debt Expense for 2020           2,916.00 C=A*B
Answer 2
Gross Receivables    1,782,500.00 D
Less: Amount uncollectible       181,700.00 E
Less: Allowance for doubtful accounts       128,600.00 F
Net Realizable Value 1,472,200.00 G=D-E-F
Answer 3
Opening Allowance for doubtful accounts         17,520.00 H
Add: Account written off earlier now collected            8,020.00 I
Less: Customer Account written off in 2020         28,220.00 J
Allowance for doubtful accounts (unadjusted)         (2,680.00) K=H+I-J
Add: Bad Debt Expense         57,280.00 L
Allowance for doubtful accounts on 31/12/20         54,600.00 M=K+L
Answer 4
Bad Debt Expense         85,030.00 N
Less: Customer Account written off in 2020         22,390.00 O
Allowance for doubtful accounts on 31/12/20         62,640.00 P=N-O
Accounts Receivables, net of allowance for doubtful accounts    1,017,600.00 Q
Gross Accounts Receivables 1,080,240.00 R=P+Q
Answer 5
Accounts Receivables       316,600.00 S
Allowance for Doubtful Accounts % 3% T
Allowance for Doubtful Accounts should be           9,498.00 U=S*T
Bad debt expense at year end:
Allowance for Doubtful Accounts should be            9,498.00 See U
Opening Allowance for Doubtful Accounts        (13,150.00) V
Bad debt expense as adjusted         22,648.00 W=U-V
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