can you please help me answer these questions...Aardvark Company sells merchandise only on credit. For the year ended December 31, 2019, the following data are available: Sales (all on credit)$1,200,000Accounts Receivable, January 1, 2019225,000Allowance for doubtful accounts, January 1, 2019 (credit)15,000Cash collections during 20191,050,000Accounts written off as uncollected (default) during 201910,000Determine the balance of Accounts Receivable at December 31, 2019.Assume that the company estimates bad debts at 2% of credit sales. What amount will the company record as bad debt expense for 2019?What journal entry would Aardvark prepare to record bad debt expense for 2019 (related to part 2)?Assume that the company estimates bad debts based on the aging method, and the aging schedule estimates that $30,100 of the year-end accounts receivable will be uncollected. What amount will the company record as bad debt expense for 2019?What journal entry would Aardvark prepare to record bad debt expense for 2019 (related to part 4)?What is the net realizable value of the receivables (i.e., Net A/R) to be reported on the balance sheet at year-end (assuming the A/R aging method was used by Aardvark)?

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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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Aardvark Company sells merchandise only on credit. For the year ended December 31, 2019, the following data are available:

Sales (all on credit)	$1,200,000
Accounts Receivable, January 1, 2019	225,000
Allowance for doubtful accounts, January 1, 2019 (credit)	15,000
Cash collections during 2019	1,050,000
Accounts written off as uncollected (default) during 2019	10,000

Determine the balance of Accounts Receivable at December 31, 2019.
Assume that the company estimates bad debts at 2% of credit sales. What amount will the company record as bad debt expense for 2019?
What journal entry would Aardvark prepare to record bad debt expense for 2019 (related to part 2)?
Assume that the company estimates bad debts based on the aging method, and the aging schedule estimates that $30,100 of the year-end accounts receivable will be uncollected. What amount will the company record as bad debt expense for 2019?
What journal entry would Aardvark prepare to record bad debt expense for 2019 (related to part 4)?
What is the net realizable value of the receivables (i.e., Net A/R) to be reported on the balance sheet at year-end (assuming the A/R aging method was used by Aardvark)?

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