At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $143,000, and the balance in Allowance for Doubtful Accounts was $2,450. EZ Tech's sales in 2017 were $1,070,000, 80% of...

1.Identify and analyze the sales during 2017.

How does this entry affect the accounting equation?
If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

Identify and analyze the transactions related to the collections of cash during 2017.

How does this entry affect the accounting equation?
If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

Identify and analyze the transactions related to the write-offs of accounts receivable during 2017.

How does this entry affect the accounting equation?
If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is
increased, it will have the effect of
decreasing
the corresponding financial statement item. If a contra account is
decreased, it will have the effect of
increasing
the corresponding financial statement item.

2.Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 4% of credit sales and (b) amounts expected to be uncollectible are 7% of the year-end accounts receivable.

a.Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 4% of credit sales.

How does this entry affect the accounting equation?
If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is
increased, it will have the effect of
decreasing
the corresponding financial statement item. If a contra account is
decreased, it will have the effect of
increasing
the corresponding financial statement item.

b.Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 7% of the year-end accounts receivable.

How does this entry affect the accounting equation?
If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is
increased, it will have the effect of
decreasing
the corresponding financial statement item. If a contra account is
decreased, it will have the effect of
increasing
the corresponding financial statement item.

3.What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)?

Using the percentage of sales approach, the net realizable value of the receivables is?
$

Using the percentage of year-end receivables approach, the net realizable value of the receivables is?
$

4.The recognition of bad debts expense reduces the net realizable value by the amount recorded in bad debts expense and the allowance for doubtful accounts. The write-off of accounts has no effect on the net realizable value.