Dennis Company's Allowance for Doubtful Accounts, showed a credit balance of $950 on January 1, 2004. During the year, the company wrote off $3,200 of uncollectible accounts, and reinstated $1,300 of previously written off accounts. The Dec 31, 2004 balance of Accounts Receivable is $97,500, and 6% of outstanding accounts receivable are assumed to be uncollectible. What will be the company's Bad Debts Expense for 2004?:

I got $6800, which is the correct answer. Just want to make sure I answered it the correct way and not coincidentally arriving at the answer. I put it on the T-chart with 3200 on the debit side and 1300 and 900 on the credit side. The ending credit balance would be $5850 since it is writing off with a percent of account receivable instead of sales. 1300+950-3200 is equal to a 950 debit balance. In order to arrive at a 5850$ credit balance we must credit $6800. Can you guys tell me if I did this problem right or overcomplicated things?


Matthew
Company issued 10 year, 7% bonds (paying semiannual interest) with a par value of $100,000. The market rate of interest when the bonds were issued was 6%. Compute the price of the bonds when they were issued.

How do I calculate the price of the bonds? I know it is above 107000 because the issued interests rate is higher than the market which lead to the bond demanding more money for it. All the information I found regarding a question like this only uses excel to calculate the price. The answer is $107,441.2

Thanks in advance guys
-PT