Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and Receivables: Sales $34,000 (of which 40% are credit sales still outstanding) Sales returns and Allowances $1,000 Miscellaneous Receivables $1,212 Allowance for Doubtful Accounts $1,502 Long term Receivables $9,014 Advances to Shareholders and Directors $4,508 Notes Receivables $2,903 (Current Portion) Bad Debt Expense is estimated as 4% of credit sales Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported on Decmber 31st? $ 544 Required 2: Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st? $ 14812 Required 3: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st? $ 23826

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and
Receivables:
Sales $34,000 (of which 40% are credit sales still outstanding)
Sales returns and Allowances $1,000
Miscellaneous Receivables $1,212
Allowance for Doubtful Accounts $1,502
Long term Receivables $9,014
Advances to Shareholders and Directors $4,508
Notes Receivables $2,903 (Current Portion)
Bad Debt Expense is estimated as 4% of credit sales
Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported on December 31st? $ 544
Required 2: Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st? $
14812
Required 3: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st? $
23826
Transcribed Image Text:Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and Receivables: Sales $34,000 (of which 40% are credit sales still outstanding) Sales returns and Allowances $1,000 Miscellaneous Receivables $1,212 Allowance for Doubtful Accounts $1,502 Long term Receivables $9,014 Advances to Shareholders and Directors $4,508 Notes Receivables $2,903 (Current Portion) Bad Debt Expense is estimated as 4% of credit sales Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported on December 31st? $ 544 Required 2: Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st? $ 14812 Required 3: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st? $ 23826
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