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Merry Company sells only on account and had a balance in its Accounts Receivable AR] account at the start of Year 2 of $900. The balance in the Allowance for Uncollectible was $75 Accounts [AUA] at the start of Year 2 In Year 2, the firm had credit sales of $7,700 and collections on account of $6,800 Write-offs and recoveries of previous write-offs in Year 2 were $290 and $30, respectively In Year 3, the firm had credit sales of $7,900 and collections on account of $6,900. Write-offs and recoveries of previous write-offs in Year 3 were $350 and $40, respectively When using the percentage of sales method, assume that Merry has properly estimated that 4% of its credit sales in Years 2 and 3 will be uncollectible Alternatively, when using the aging method, assume the firm had estimated at the end of Year 1 that $825 of its AR would be collectible. One year later, at the end of Year 2, the firm's management properly estimated that the firm would not be able to collect $110 of its AR. At the end of Year 3, the firm estimated that the firm would be able to collect $2,010 of its AR balance. Required: Determine the carrying value of AR for Merry at the end of Year 2 when using the percentage of sales method S Determine the balance in AUA for Merry at the end of Year 3 when using the percentage of sales method Determine the Bad Debt Expense for Year 3 for Merry when using the aging method. Merry Company sells only on account and had a balance in its Accounts Receivable AR] account at the start of Year 2 of $900. The balance in the Allowance for Uncollectible was $75 Accounts [AUA] at the start of Year 2 In Year 2, the firm had credit sales of $7,700 and collections on account of $6,800 Write-offs and recoveries of previous write-offs in Year 2 were $290 and $30, respectively In Year 3, the firm had credit sales of $7,900 and collections on account of $6,900. Write-offs and recoveries of previous write-offs in Year 3 were $350 and $40, respectively When using the percentage of sales method, assume that Merry has properly estimated that 4% of its credit sales in Years 2 and 3 will be uncollectible Alternatively, when using the aging method, assume the firm had estimated at the end of Year 1 that $825 of its AR would be collectible. One year later, at the end of Year 2, the firm's management properly estimated that the firm would not be able to collect $110 of its AR. At the end of Year 3, the firm estimated that the firm would be able to collect $2,010 of its AR balance. Required: Determine the carrying value of AR for Merry at the end of Year 2 when using the percentage of sales method S Determine the balance in AUA for Merry at the end of Year 3 when using the percentage of sales method Determine the Bad Debt Expense for Year 3 for Merry when using the aging method

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