### Transcription of Accounting Data#### Marigold Co. Financial Overview for 2025Marigold Co. provides for doubtful accounts based on 3% of gross accounts receivable. The following data are available for 2025:- **Credit sales during 2025:** $3,343,800- **Bad debt expense:** $57,040- **Allowance for doubtful accounts on 1/1/25:** $16,760- **Collection of accounts written off in prior years (customer credit was reestablished):** $7,930- **Customer accounts written off as uncollectible during 2025:** $30,830**Question:**What is the balance in Allowance for Doubtful Accounts at December 31, 2025?- **Allowance for doubtful accounts 12/31/25:** $__________#### Swifty Inc. Financial Overview at the End of its First Year of Operations (December 31, 2025)Swifty Inc. reported the following information:- **Accounts receivable, net of allowance for doubtful accounts:** $872,800- **Customer accounts written off as uncollectible during 2025:** $26,370- **Bad debt expense for 2025:** $89,470---This information provides a comprehensive overview of how Marigold Co. and Swifty Inc. handle accounts receivable and bad debt, analyzing how they adjust their financial statements to align with accounting standards and accuracy in reflecting their financial positions.

The allowance for doubtful accounts has the credit balance. The allowance for doubtful accounts is…

3. Marigold Co. provides for doubtful accounts based on 3% of gross accounts receivable. The following data are available for 2025. Credit sales during 2025 Bad debt expense Allowance for doubtful accounts 1/1/25 Collection of accounts written off in prior years (customer credit was reestablished) Customer accounts written off as uncollectible during 2025 What is the balance in Allowance for Doubtful Accounts at December 31, 2025? Allowance for doubtful accounts 12/31/25 $ $3,343,800 57,040 16,760 7,930 30,830

3. Marigold Co. provides for doubtful accounts based on 3% of gross accounts receivable. The following data are available for 2025. Credit sales during 2025 Bad debt expense Allowance for doubtful accounts 1/1/25 Collection of accounts written off in prior years (customer credit was reestablished) Customer accounts written off as uncollectible during 2025 What is the balance in Allowance for Doubtful Accounts at December 31, 2025? Allowance for doubtful accounts 12/31/25 $ $3,343,800 57,040 16,760 7,930 30,830

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer 2. And 3.
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