Answer Happy

The Ritchie Company gathered the following information
pertaining to its year ended December 31, 2019, prior to any
adjustments:
Net credit sales for the year
$780,000
Accounts receivable, Dec. 31, 2019
170,000
Allowance for doubtful accounts,
December 31, 2019
3,200
Cr.
Aging of accounts receivable at December 31, 2019:
1-30 days
$95,000
31-60 days
38,000
61-90 days
23,000
Over 90 days
14,000
Total
$170,000
Choose the best answer
Refer to Table 9-5. Assume Ritchie uses the
aging-of-accounts-receivable method for estimating uncollectible
accounts. Ritchie estimates that uncollectible accounts will be
aged as follows: 2% for 1-30 days; 4% for 31-60 days; 10% for 61-90
days; and 25% for over 90 days. The balance in allowance for
doubtful accounts after the adjusting entry for uncollectible
accounts will be:
A) $12,280
B) $6,000
C) $5,880
D) $9,220
Choose the best answer
Refer to Table 9-5. Assume Ritchie uses the percent-of-sales
method for estimating uncollectible accounts. Ritchie estimates
that bad-debt expense will be 1.3% of net credit sales. After the
adjustment for uncollectible accounts is made, the net realizable
value of accounts receivable will be:
A) $156,660
B) $170,000
C) $159,860
D) $163,060