Information for the Hooper Company Is as Follows (1) What Is the Amount of Uncollectible Account Expense for

question 52

Essay

Information for the Hooper Company is as follows:
$\begin{array}{|l|r|}\hline \text { Accounts Receivable at March 31, 2009 } & \$ 9,000 \\\hline \text { Allowance for Doubtful Accounts (Credit balance) } & \$ 2,000 \\\hline \text { Net Sales ( } 85 \% \text { on credit) for year ending 12/31/09 } & \$ 100,000\\\hline\end{array}$
(1) What is the amount of uncollectible account expense for 2009 if the company uses the Percentage of Sales method and 2% of credit sales are deemed uncollectible?
(2) What is the amount of uncollectible expense if the company uses the balance sheet approach and estimates $2,200 as uncollectible in 2009?
(3) What is the net realizable value of accounts receivable if the company uses the balance sheet approach?
(4) If the company writes-off a receivable of $450 what will be the net realizable value of accounts receivable after the write off?

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Definitions:

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