Grass Frog Company sells merchandise only on credit. For the year ended December 31, 2018, the following data are available: Sales (all on credit) $2,100,000
Accounts Receivable, January 1, 2018 305,000
Allowance for doubtful accounts,
January 1, 2018 (credit) 25,000
Cash collections during 2018 1,980,000
Accounts written off as uncollected
(default) during 2018 15,000
1. Determine the balance of Accounts Receivable at December 31, 2018.
2. Assume that the company estimates bad debts at 4% of credit sales. What amount will the company record as bad debt expense for 2018?
3. What journal entry Grass Frog prepare to record bad debt expense for 2018 (related to part 2)?
4. Now assume the company estimates bad debts based on the aging method. Estimate the ending balance in the allowance for doubtful accounts at December 31, 2018 using the information below:
AGE CLASS % UNCOLLECTIBLE AMOUNT
Not Past Due 1% $220,000
1-30 Days Past Due 5% $110,000
31-60 Days Past Due 10% $40,000
61-90 Days Past Due 25% $30,000
Over 90 Days Past Due 50% $10,000
1. What journal entry would Grass Frog prepare to record bad debt expense for 2018 (related to part 4)?
2. What is the net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog)?

Grass Frog Company

1. The balance of Accounts Receivable at December 31, 2018 is:

= $410,000.

2. The amount that the company will record as bad debt expense for 2018 is:

= $74,000.

3. Journal Entry to record the bad debt expense for 2018:

Debit Bad Debt Expense $74,000

Credit Allowance for Doubtful Accounts $74,000

To record the bad debt expense for the year.

4. The ending balance in the allowance for doubtful accounts at December 31, 2018 is:

= $24,200

a. Journal Entry to record bad debt expense:

Debit Bad Debt Expense $14,200

Credit Allowance for Doubtful Accounts $14,200

To record the bad debt expense for the year.

b. The net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog) is:

Accounts receivable balance     $410,000

Allowance for doubtful accounts (24,200)

Net realizable value =                $385,800

Explanation:

a) Data and Calculations:

December 31, 2018:

Accounts Receivable

January 1, 2018                           $305,000

Sales (all on credit)                     2,100,000

Cash collections during 2018   (1,980,000)

Accounts written off during 2018  (15,000)

Dec. 31, 2018 balance                 $410,000

Allowance for doubtful accounts,

Accounts written off during 2018  $15,000

December 31, 2018 (4%)                  84,000

January 1, 2018 (credit)                  (25,000)

Bad Debts Expense                        74,000

AGE ANALYSIS:

AGE CLASS                           %      UNCOLLECTIBLE    ALLOWANCE

                                                              AMOUNT

Not Past Due                       1%             $220,000            $2,200

1-30 Days Past Due           5%               $110,000               5,500

31-60 Days Past Due       10%                $40,000              4,000

61-90 Days Past Due      25%                $30,000              7,500

Over 90 Days Past Due 50%                 $10,000              5,000

Total                                                    $410,0000         $24,200

Accounts written off during 2018  $15,000

December 31, 2018                          24,200

January 1, 2018 (credit)                  (25,000)

Bad Debts Expense                         14,200

someone i feel is a leader in my life id have to say would be my mother because she has give me great advice in life and got me out of tough situations. some characteristics she has are creativity, honesty, commitment, respect for others, and communication. one example of a situation when she demonstrated leadership was when i was working late on homework and i started to get stressed and got upset, she asked me if i needed some , and she me with my work. she demonstrated communication and commitment.

i don't know if this is exactly what your looking for but i hope this !