how much of the december 31 20×2 balance of accounts receivables did str expect to 580289

Superior Technical Resources’ (STR’s) balance sheet at December 31, 20X2, reported:

STR uses both the percent of sales and the aging approaches to account for uncollectible receivables.

Required

1. How much of the December 31, 20X2, balance of accounts receivables did STR expect to collect? Stated differently, what was the net realizable value of STR’s receivables?

2. Journalize, without explanations, 20X3 entries for STR:

a. Estimated doubtful account expense of $40 million, based on the percent of sales method, all during the year.

b. Write offs of uncollectible accounts receivable totaling $58 million. Prepare a T account for Allowance for Doubtful Accounts and post to this account. Show its unadjusted balance at December 31, 20X3.

c. December 31, 20X3, aging of receivables, which indicates that $47 million of the total receivables of $409 million is uncollectible at year end. Post to Allowance for Doubtful Accounts, and show its adjusted balance at December 31, 20X3.

3. Show how STR’s receivables and the related allowance will appear on the December 31, 20X3, balance sheet.

4. Show what STR’s income statement will report for the foregoing transactions.