For each of the following scenarios, calculate the amount of the adjusting journal entry for Bad Debt
Expense to be recorded, the balance in Allowance for Doubtful Accounts after adjustment at December
31, and the net realizable value of accounts receivable at December 31. (12 pts)
(a) Based on an analysis of Simmons Company’s $380,000 balance in Accounts Receivable at December
31, it was estimated that $15,500 will be uncollectible. There is a debit balance of $1,200 in Allowance for
Doubtful Accounts before adjustment.

(b) Blake Company had credit sales of $900,000 at year-end, an Accounts Receivable balance of $425,000
at December 31, and an Allowance for Doubtful Accounts debit balance of $11,000 before
adjustment. Blake estimates bad debt expense as 3⁄4 of 8% of credit sales.

Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e.g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)