Sliders Company
Sliders Company Sells Its Merchandise Only on Credit

question 91

Essay

Sliders Company
Sliders Company sells its merchandise only on credit.The following data are available at December 31,2017:
$$\begin{array} { l r } \text { Sales } & \$ 375,000 \\\text { Sales returns and allowances } & 12,000 \\\text { Accounts receivable-January 1, 2017 } & 60,600 \\\text { Allowance for doubtful accounts-January 1, 2017 } & 3,200 \\\text { Cash collections during 2017 } & 362,500 \\\text { Accounts written off as uncollectible during 2017 } & 2,400\end{array}$$
-Refer to the data for Sliders Company.
Assume the company estimates bad debts using an aging analysis and the aging schedule indicates that $3,600 of the year-end Accounts Receivable will be uncollectible.
A) What amount will Sliders Company recognize as bad debts expense for the year?

B) If the ending balance of Accounts Receivables is $\$ 38,700$ , what is the net realizable value of Accounts Receivable reported on December 31, 2017 ?

Understand the benefits of flexible benefit packages, including tax advantages.

Know the best practices for hiring family members according to Peter Drucker.

Be aware of the rules and limits concerning individual retirement accounts (IRAs).

Understand the selection process for new employees.