Scenario 2:Assuming the company uses accounts receivablein estimating doubtful accounts at 4%. Moreover,the allowance for doubtful account is a credit.d. How much is the bad debts expense for 2019?e. How much is the adjusted balance of theallowance for doubtful accounts at December 31?(5potf. How much is the net realizable value of theaccounts receivable? Accounts ReceivableFree Company gathered the following informationfrom its accounting records for the year endedDecember 31, 2019:• Net Credit Sales for the year - P680,000• Accounts Receivable at December 31 -92,000• Allowance for doubtful accounts atDecember 31 - 1,850

(d) Calculation of Bad Debts Expense for 2019 Bad Debt Expense = (Accounts Receivable x 4%) - Credit…

d. How much is the bad debts expense for 2019? e. How much is the adjusted balance of the allowance for doubtful accounts at December 31? f. How much is the net realizable value of the accounts receivable?

d. How much is the bad debts expense for 2019? e. How much is the adjusted balance of the allowance for doubtful accounts at December 31? f. How much is the net realizable value of the accounts receivable?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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