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1. Eurobake Inc. made a $50,000 sale on account with terms of 1/15, n/30. If the company uses the net method, which of the following will be included in the journal entry to record the sale on account?
2. Marston Company has outstanding accounts receivable totaling $1.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $2,000 in the allowance for doubtful accounts as of December 31. After aging its receivables, the company estimates that 8% of its total outstanding receivables will be uncollectible. What will be the amount of bad debt expense recognized for the year?
3. Marston Company has outstanding accounts receivable totaling $4.5 million as of December 31 and sales on credit during the year of $20 million. There is also a credit balance of $18,000 in the allowance for doubtful accounts. After aging its receivables, the company estimates that 2% of its receivables will be uncollectible. What will be the balance for the Allowance for Uncollectible Accounts after the year-end adjustment is made to record bad debt expense?
4. Prior to adjustments, Willett Company’s account balances at December 31, 2018, for Accounts Receivable and the related Allowance for Uncollectible Accounts were $2,700,000 and $120,000, respectively. An aging of accounts receivable indicated that $207,000 of the December 31, 2018, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2018, was ________.
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