Nicole Corporation had a 1/1/22 balance in the Allowance for Doubtful Accounts of $25,000 and...
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Accounting
Nicole Corporation had a 1/1/22 balance in the Allowance for Doubtful Accounts of $25,000 and Accounts Receivable of $120,000. During 2022, it wrote off $21,500 of accounts. Nicole made $250,000 in credit sales during 2022, and it estimates 3% of credits sales will go uncollected. Nicole collected $300,000 from customers for previous sales made on account. Complete the following FSET to record credit sales, collections, write-offs of accounts and the bad debt expense adjustment. Input positive values for increases in account balances and negative values for decreases in account balances. Calculate Accounts Receivable, Net Realizable Value at the beginning of the year and after the bad debt expense adjustment. (1 point per response)
Fill in the values where the letters are
Trans.
Cash
A/R
Allowance for Doubtful Accounts
Sales
Bad Debt Expense
Beg. Bal
120,000
25,000
Credit Sales
B
G
Collections
A
C
Write-offs
D
E
Bad Debt Adj.
F
H
Beginning A/R, Net Realizable Value =
Ending A/R, Net Realizable Value =
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