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

question 133

Essay

Information for the Hooper Company is as follows:
$\begin{array}{|l|r|}\hline \text { Accounts receivable at March 31,2009 } & \$ 9,000 \\\hline \text { Allowance for Impairment (Credit balance) } & \$ 2,000 \\\hline \text { Net Sales (85\% on credit) for year ending 12/31/09 } & \$ 100,000 \\\hline\end{array}$ (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 estimated collectible amount 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 estimated collectible amount of accounts receivable after the write off?

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Definitions:

Kidney

An organ in vertebrates, responsible for filtering waste products from blood and excreting them, along with water, as urine.

Ureter

A pair of muscular tubes that transport urine from the kidneys to the bladder.

Nephron

The functional unit of the kidney, responsible for urine formation.

Renal Cortex

The outer part of the kidney where initial filtering of blood occurs.