Larsen Company Began 2016 with Balances in Accounts Receivable and Allowance

question 142

Essay

Larsen Company began 2016 with balances in accounts receivable and allowance for doubtful accounts of $45,700 and $1,280,respectively.The company reported credit sales of $475,250 during the year,collected $480,200,and wrote off $800 of uncollectible accounts.Larsen Company estimates that 12% of its accounts receivable balance will be uncollectible.
Required:
a)Calculate Larsen Company's uncollectible accounts expense for 2016.
b)What will Larsen report as its allowance for doubtful accounts on December 31,2016?
c)Calculate Larsen's net realizable value of accounts receivable on December 31,2016.

---

Definitions:

Thalamus

Large mass of gray matter that forms the larger dorsal subdivision of the diencephalon.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain in humans and other mammals, responsible for higher brain functions, including sensation, voluntary muscle movement, thought, reasoning, and memory.

Phasic Receptors

Sensory receptors that detect changes in stimulus intensity, adapting quickly and only responding to the onset and cessation of stimuli.

Primary Receptors

Sensory cells or nerve endings that respond directly to stimuli from the environment, such as light, sound, or chemicals.