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1.) The following information is from the 2019 records of Fast Lane Racing​ Gear: Accounts​ receivable,...

1.) The following information is from the 2019 records of Fast Lane Racing​ Gear:

Accounts​ receivable, December​ 31, 2019

$44,000​ (debit)

Allowance for Bad​ Debts, December​ 31, 2019 prior to adjustment

1,800​ (debit)

Net credit sales for 2019

178,000          

Accounts written off as uncollectible during 2019

16,000          

Cash sales during 2019

28,000          

Bad debts expense is estimated by the aging-of−receivables method. Management estimates that $10,000 of accounts receivable will be uncollectible. Calculate the ending balance of Allowance for Bad​ Debts, after the adjustment for bad debts​ expense, at December​ 31, 2019.

2.) Refer to the following information for Tolan​ Corporation:

• Common​ Stock, $1.00 ​par, 104,000 shares​ issued,97,000 shares outstanding

• Paid−In Capital in Excess of Par—​Common: $2,340,000

• Retained​ Earnings: $950,000

• Treasury​ Stock: 7,000 shares purchased at $29.00 per share

If Tolan resold 1 comma 2001,200 shares of treasury stock for $17.00 per​ share, which of the following statements would be​ true?

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ekkarill92 answered 1 year ago
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