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I am not sure If requirement 1 and 3 are correct. Also I do not know the answer for requirement 2. If someone could verify my answers that would be great and answer question 2.

At December 31, 2016 before any year-end adjustments are made, Green Corporation had a $70 million balance in Accounts Receivable and a $1.3 million debit balance in the Allowance for Uncollectible accounts. Requirement 1. What is the normal balance in the Allowance for Uncollectible Accounts? What would cause this account to have a debit balance? The normal balance in the Allowance for Uncollectible Accounts is a credit If write-offs of accounts receivable are less than management's estimate of uncollectible accounts, it would result in a debit balance Requirement 2. How does management determine the amount of uncollectible accounts? O A. Management estimates the uncollectible accounts using the days sales in receivables method in which it tells how ong it takes to collect the average level of receivables. Shorter is better because cash is coming in quickly. The longer the collection period, the less cash is available to pay bills and expand O B. Management estimates the uncollectible accounts using the net realizable value method where accounts receivable are reported in the financial statements at cost minus an appropriate allowance for uncollectible accounts. O C. Management estimates the uncollectible accounts using the straight-ine method where individual inventories from specific clients are analyzed based on how long they have been outstanding. They use their professional judgment and the company's past payment experience O D. Management estimates the uncollectible accounts using the allowance method where individual receivables from specific customers are analyzed based on how long they have been outstanding. They use their professional judgment and the company's past collection experience Requirement 3. The aging of receivables indicates that Green Corporation will not collect $2.3 million of its accounts receivables. Prepare the journal entry to record the bad debt expense for 2016. (Record debits first and then credits. Explanations are not required. Enter amounts in millions as provided to you in the problem statement, XX.) Journal Entry Date Accounts Debit Credit Bad Debt Expense 100000 Dec. 31 Allowance for Uncollectible Accounts 100000

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