Cox Associates
The following information is for Cox Associates at the end of 2012:
Sales
Sales returns and allowances
Accounts Receivable - December 31, 2012
Allowance for Doubtful Accounts - December 31, 2012
(Before adjustment for bad debts)
Estimated Uncollectible Accounts
(per aging schedule at December 31, 2012)
2. Refer to the data for Cox Associates.
$800,000
8,000
175,000
1,000
7,500
1) If bad debts are estimated at 1% of net sales, how much will Cox report as bad debts expense for 2012?
3. 2) Refer to the data for Cox Associates.
If the aging approach is used to estimate bad debts, how much bad debts expense will Cox report for 2012?
Refer to the data for Cox Associates.
If the aging approach is used to estimate bad debts, how much is the net realizable value of the accounts receivable at December 31, 2012?