Allowance for Doubtful accou -120,000

Allowance for SD -10,000

Net Realizable Value 2,270,000
Problem 5-2

a.
Accounts receivable 7,000,000
Sales 7,000,000
Cash 2,450,000
Sales Discount 50,000
Accounts Receivable 2,500,000
Cash 3,900,000
Accounts Receivable 3,900,000
Allowance for Doubtful accou 30,000
Accounts Receivable 30,000
Accounts Receivable 10,000
Allowance for Doubtful Accou 10,000
Cash 10,000
Accounts Receivable 10,000
Sales return 70,000
Accounts receivable 70,000

Allowance for DA, ending 60,000

Allowance for DA, beggining 40,000
Doubtful accounts expense 20,000

b.
Doubtful Accounts Expense 40,000
Allowance for Doubtful Accou 40,000

c.
Accounts receivable 1,500,000
Allowance for Doubtful Accou 60,000
Net realizable value 1,440,000