Use the Information That Follows Taken from the Unadjusted Trial

question 57

Essay

Use the information that follows taken from the unadjusted trial balance and aging schedule of Behrend Company on December 31, 2010 to answer problems 15. All sales are on account.
Accounts and related balances at December 31, 2010 before adjustment:
Aging Schedule of Accounts Receivable:

-If Behrend uses the aging schedule of accounts receivable to determine bad debts, determine the following:
A. Bad debts expense for the year ending December 31, 2010
B. Allowance for Doubtful Accounts balance at December 31, 2010
C. Net realizable value of accounts receivable on the 2010 financial statements

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Definitions:

Entrepreneur

An individual who starts and operates a business venture, assuming the risk for the sake of the profit.

Risk

The possibility of suffering harm or loss; uncertainties affecting the outcome of investment decisions.

Start-Up Process

The series of steps entrepreneurs follow to establish a new business, including idea generation, market research, and securing financing.

Harvest

The stage when the owner removes him or herself from the business. Harvesting a business can be thought of as picking the fruit after years of labor.