Understanding Net Credit Sales, Allowances, and Bad Debt

Example 4 Part ANetcredtsalesmethod 2 Acc Rec 420,000 500,000 1Sales Allowancefor doubtful Aa 5342007 Sales returns allowances noooo o salesdiscountsMetrealizable Value 382,800 met credit sales 482,000 Baddebt expense _Metcred t sales X482,000 x on X 15119,280 Bad debt expense 2Net realizable valvesAccreeAllowance Allowance for doubtfulAcc writeoff 12,200 18500Beginning Balance 7,800 Recoveries 19280 Baddebt expense 33,380Ending Balance Acc Rec 420,000 Allowancefor doubtfulAa 233,3807 Metrealizable Value 386,620 Part B AgingMethod 1 I CAmountosreuraskx IEnding balance for Allotorboubtaiaa AgeBalance Estimatiatse Amount current320 ooo 6 o 1sodaso oooay a soo 31 aodays sooooo isi qso ourg days noitoo uw ooo 36no Allowance for doubtfulAcc meows 12,200 18500Beginning Balance 18500178004 12200 36 zoo 7,800 Recoveries X 22,100 1122,100 Baddebt expense 36,200Ending Balance