Grass Frog Company sells merchandise only on credit. For the year ended December 31, 2018, the following data are available: Sales (all on credit) $2,100,000
Accounts Receivable, January 1, 2018 305,000
Allowance for doubtful accounts,
January 1, 2018 (credit) 25,000
Cash collections during 2018 1,980,000
Accounts written off as uncollected
(default) during 2018 15,000
1. Determine the balance of Accounts Receivable at December 31, 2018.
2. Assume that the company estimates bad debts at 4% of credit sales. What amount will the company record as bad debt expense for 2018?
3. What journal entry Grass Frog prepare to record bad debt expense for 2018 (related to part 2)?
4. Now assume the company estimates bad debts based on the aging method. Estimate the ending balance in the allowance for doubtful accounts at December 31, 2018 using the information below:
AGE CLASS % UNCOLLECTIBLE AMOUNT
Not Past Due 1% $220,000
1-30 Days Past Due 5% $110,000
31-60 Days Past Due 10% $40,000
61-90 Days Past Due 25% $30,000
Over 90 Days Past Due 50% $10,000
1. What journal entry would Grass Frog prepare to record bad debt expense for 2018 (related to part 4)?
2. What is the net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog)?

Grass Frog Company

1. The balance of Accounts Receivable at December 31, 2018 is:

= $410,000.

2. The amount that the company will record as bad debt expense for 2018 is:

= $74,000.

3. Journal Entry to record the bad debt expense for 2018:

Debit Bad Debt Expense $74,000

Credit Allowance for Doubtful Accounts $74,000

To record the bad debt expense for the year.

4. The ending balance in the allowance for doubtful accounts at December 31, 2018 is:

= $24,200

a. Journal Entry to record bad debt expense:

Debit Bad Debt Expense $14,200

Credit Allowance for Doubtful Accounts $14,200

To record the bad debt expense for the year.

b. The net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog) is:

Accounts receivable balance     $410,000

Allowance for doubtful accounts (24,200)

Net realizable value =                $385,800

Explanation:

a) Data and Calculations:

December 31, 2018:

Accounts Receivable

January 1, 2018                           $305,000

Sales (all on credit)                     2,100,000

Cash collections during 2018   (1,980,000)

Accounts written off during 2018  (15,000)

Dec. 31, 2018 balance                 $410,000

Allowance for doubtful accounts,

Accounts written off during 2018  $15,000

December 31, 2018 (4%)                  84,000

January 1, 2018 (credit)                  (25,000)

Bad Debts Expense                        74,000

AGE ANALYSIS:

AGE CLASS                           %      UNCOLLECTIBLE    ALLOWANCE

                                                              AMOUNT

Not Past Due                       1%             $220,000            $2,200

1-30 Days Past Due           5%               $110,000               5,500

31-60 Days Past Due       10%                $40,000              4,000

61-90 Days Past Due      25%                $30,000              7,500

Over 90 Days Past Due 50%                 $10,000              5,000

Total                                                    $410,0000         $24,200

Accounts written off during 2018  $15,000

December 31, 2018                          24,200

January 1, 2018 (credit)                  (25,000)

Bad Debts Expense                         14,200

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.