Advances to trade suppliers 40,000

Trade discounts (10,000)

Stock subscription receivable 200,000

How much is the amount of nontrade receivables?

a. 200,000 b. 230,000 c. 240,000 d. 340,000

33. All ofCleeneth’s sales are on a credit basis. The following information is available for

2010:

Allowance for doubtful accounts, 1/1/2010 18,000

Sales 950,000

Sales returns 80,000

Accounts written off as uncollectible, 11/30/2010 20,000

Cleeneth provides for doubtful accounts expense at the rate of 3% of net sales. At December

31, 2010, the allowance for doubtful accounts balance should be 24,100

The following data are available on Dec. 31, 2010 for OKS Lang Company:

Credit sales 6,500,000 Accounts receivable 1,640,000

Allow. For bad debts –beg. 88,000 Accounts written off 92,000

Recovery of accounts previously written of 16,000

Compute for the following:

34. Bad debts expense assuming the estimate is based on accounts receivable at 9%.

135,600

35. Bad debts expense based on aging, 60% of the total A/R is 96% collectible while the

remaining 40% is 80% collectible 158,560

36. Allow. For bad debts – end assuming 3.5% of credit sales are doubtful of collection.

239,500