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On November 30, Walker Agency has account receivable of $194,000 and a credit balance of $6,000 in Allowance for Doubtful Accounts.

Page 6 ACCT 201 Case Fall 2020 Question 5: on November 30, Walker Agency has accounts receivable of $194,000 and a credit balance of $6,000 in Allowance for Doubtful Accounts a What is the cash (net) realizable value on November 307 b. On December 31, the accounts receivable balance is $500,000 and Allowance for Doubtful Accounts is $5,000. Walker uses the percentage of receivables method to determine uncollectible receivables. Management estimates that 2% of receivables will not be collected. For what amount would the adjustment be to record the estimate of uncollectible accounts c. What would the balance in Allowance for Doubtful Accounts be after the above adjustment on December 317 d. What account would be debited to record the adjustment in part (1) above? e. During January of the following year, a customer's $7,000 account is written off. What account would be debited to record this transaction? f. What is cash (net) realizable value on January 31, 2021, after the write off? t. On what financial statement will each of the following be reported: (1) Bad Debt Expense (2) Allowance for Doubtful Accounts (3) Accounts Receivable

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