The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2013, the allowance account had a credit balance of $82,500. Credit sales for 2013 totaled $3,100,000 and the year-end accounts receivable balance was $710,000. During this year, $80,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.

Required:
1.
Does this situation describe a loss contingency?

X Yes

No

2. What is the bad debt expense that Manda Panda should report in its 2013 income statement?
Bad debt expense
3.
Prepare the appropriate journal entry to record the contingency. (If no entry is required for an event, select "No journal entry required" in the first account field.)

Event General Journal Debit Credit
1 Bad debit expense
Allowance for uncollectible accounts
4.
What is the net realizable value (book value) Manda Panda should report in its 2013 balance sheet?

Accounts Receivable
End. Bal. 710,000
Allowance for Uncollectible Accounts
Beg. Bal 82,500
Write-off of bad debts Bad debt expense
End. Bal.
Balance Sheet:
Accounts Receivable
Allowance for uncllectible accounts
Net realizable Value

On january 1, jackson, inc.'s work-process inventory account showed a balance of $ 66,500. during the year, materials requisitioned for use in production amounted to $ 70,500, of which $ 67,700 represented direct materials. factory wages for the period were $ 210,000 of which $ 187,000 were for direct labor. manufacturing overhead is allocated on the basis of 60% of direct labor cost. actual overhead was $ 116,050. jobs costing $ 353,060 were completed during the year. the december 31 balance in work-process inventory is

Amanda works as an industrial designer

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.