The following are a series of unrelated situations. 1. Halen Company’s unadjusted trial balance at December 31, 2025, included the following accounts. DebitCredit Accounts receivableAllowance for doubtful accounts Net sales$53,000 4,000$1,200,000Halen Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2025.2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2025, disclosed the following. Amounts estimated to be uncollectibleAccounts receivable Allowance for doubtful accounts (per books)$ 180,000 1,750,000 125,000What is the net amount expected to be collected of Stuart’s receivables at December 31, 2025?3. Shore Co. provides for doubtful accounts based on 4% of gross accounts receivable. The following data are available for 2025.Credit sales during 2025 Bad debt expenseAllowance for doubtful accounts 1/1/25Collection 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?4. At the end of its first year of operations, December 31, 2025, Darden Inc. reported the following information.Accounts receivable, net of allowance for doubtful accounts $950,000 Customer accounts written off as uncollectible during 2025 Bad debt expense for 202524,000 84,000What should be the balance in accounts receivable at December 31, 2025, before subtracting the allowance for doubtful accounts?5. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2025. DebitCredit Net credit salesAllowance for doubtful accounts Accounts receivable$ 14,000 310,000If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2020.Instructions Answer the questions relating to each of the five independent situations as requested.
The following are a series of unrelated situations. 1. Halen Company’s unadjusted trial balance at December 31, 2025, included the following accounts. Debit
Credit Accounts receivable
Allowance for doubtful accounts Net sales
$53,000 4,000
$1,200,000
Halen Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2025.
2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2025, disclosed the following. Amounts estimated to be uncollectible
Accounts receivable Allowance for doubtful accounts (per books)
$ 180,000 1,750,000 125,000
What is the net amount expected to be collected of Stuart’s receivables at December 31, 2025?
3. Shore Co. provides for doubtful accounts based on 4% 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?
4. At the end of its first year of operations, December 31, 2025, Darden Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts $950,000 Customer accounts written off as uncollectible during 2025 Bad debt expense for 2025
24,000 84,000
What should be the balance in accounts receivable at December 31, 2025, before subtracting the allowance for doubtful accounts?
5. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2025. Debit
Credit Net credit sales
Allowance for doubtful accounts Accounts receivable
$ 14,000 310,000
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2020.
Instructions Answer the questions relating to each of the five independent situations as requested.
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