At December 31, 2022, the records of Malone Company contained the following amounts before adjustment. Accounts Receivable $180,000 Allowance for Doubtful Accounts 1,500
Instructions
a. What amount of bad debt expense will Malone Company report if its aging schedule indicates that $10,200 of accounts receivable will be uncollectible?
b. During the next month, January 2023, a $2,100 account receivable is written off as uncollectible. What amount of bad debt expense will Malone Company report in January 2023?
b. Bad debt exp. $0
c. Repeat part (b), assuming that Malone Company uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable.
d. What are the advantages of using the allowance method in accounting for uncollectible accounts as compared to the direct write-off method?
Compute inventory turnover and days in inventory; compute current ratio.
