The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, the allowance account had a credit balance of $96,950. Credit sales for 2018 totaled $3,150,000 and the year-end accounts receivable balance was $537,500. During this year, $94,250 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:
a. Does this situation describe a loss contingency? Explain.
b. What is the bad debt expense that Manda Panda should report in its 2018 income statement?
c. Prepare the appropriate journal entry to record the contingency.
d. What is the net realizable value (book value) Manda Panda should report in its 2018 balance sheet?

a. Does this situation describe a loss contingency? Explain.

Allowance for doubtful accounts are a loss contingency since they mar or may not happen, but the company has to account for them.

b. What is the bad debt expense that Manda Panda should report in its 2018 income statement?

total bad debt expense = total sales x 3% = $3,150,000 x 3% = $94,500

c. Prepare the appropriate journal entry to record the contingency.

Dr Bad debt expense 94,500

    Cr Allowance for doubtful accounts 94,500

d. What is the net realizable value (book value) Manda Panda should report in its 2018 balance sheet?

ending balance of accounts receivable = $537,500 - $94,500 = $443,000

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police