Information related to accounts receivable is given:
Mobile Technology Ltd reported an unadjusted balance of accounts receivable of $ at December along with a
credit balance in the allowance for doubtful accounts of $ and an allowance for sales discounts of $ At yearend, the
company determined that an allowance of $ for sales discounts was needed. It also decided that $ of accounts
receivable were uncollectible and should be written off. Of the remaining receivables, it was determined that were current, and of
the remaining net current balance, an allowance for doubtful accounts of of the net balance was needed. The remaining of
outstanding accounts receivable were past due and an allowance for doubtful accounts of of the outstanding balance was
needed.
Required:
For each case above, show how net accounts receivable would be reported on the statement of financial position, and calculate bad
debt expense for the year. Round your answers to the nearest whole dollar.
