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question g and h Short Answer Problem 2: ACCOUNTING FOR...

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Accounting

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Short Answer Problem 2: ACCOUNTING FOR BAD DEBTS (24 Points) Sun Company is a consulting company and provides services to customers with credit terms n/30. The January 1, 2019 trial balance reported a balance in Accounts Receivable of $120,000 and a balance in the Allowance for Doubtful Accounts of $4,800. (Assume normal balances for both accounts.) REQUIRED: Answer the questions and prepare the necessary journal entries in the space provided below. Show your work/calculations for possible partial credit. This may include posting journal entries to T-accounts where appropriate. Do not abbreviate unless you first define your abbreviations. G. What is the Net Accounts Receivable (i.e. Cash Realizable Value) reported in the 12/31/2019 Balance Sheet? Net Accounts Receivable, 12/31/2019 H. If Sun Company wrote off $1,000 of uncollectible accounts on 1/1/2020, what is the Net Accounts Receivable (i.e. Cash Realizable Value) reported in the 1/1/2020 Balance Sheet after the write off? Net Accounts Receivable, 1/1/2020 1. Give ONE reason why the Allowance Method of Accounting for Bad Debts is required by U.S. GAAP when bad debts are material. (If you give more than one reason only your first answer will

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