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Text movements Problem Essay16 to 30150,000.000.949,000.0031 to 4575,000.000.8015,000.0046 to 6045,000.000.6515,750.0061 to 7515,000.000.507,500.00Over 7515,000.0015,000.00Total51,750.0015,000.00a. Appropriate balance for AFDA is $ 51,750.00(equals to compensation Amount in the Aging Schedule)b. Presentation of Accounts Receivable in Balance SheetAccounts Receivable735,000.00 little Allowance for equivocal Accounts51,750.00Net, Accounts Receivable683,250.00c. Dollar Effect of Bad Debt ExpenseAFDA, Beginning Balance37,500.00AFDA, write-off(15,000.00)AFDA, Movement29,250.00AFDA, terminus Balance51,750.00Dollar Effect of Bad Debt Expense is $ 29.250.00(equals to movement amount of AFDA)Case 5-1 Question 1Stern CorporationGeneral Journal(in USD)DateAccountDr.Cr.2010 declension31Accounts Receivable9,965,575.00 gross sales9,965,575.0031Cash9,685,420.00Accounts Receivable9,685,420.0031Allowance for Doubtful Accounts26,854.00Accounts Receivable26,854.0031Accounts Receivable4,594.00Allow ance for Doubtful Accounts4,594.0031Cash2,108.00Accounts Receivable2,108.0031Cash1,566.00Accounts Receivable1,566.0031Bad Debt Expense29,886.00Allowance for Doubtful Accounts29,886.00Case 5-1 Question 2(in USD)AccountBeginning Balance, 2010Movement, 2010Ending Balance, 2010Cash671,344.009,689,094.0010,360,438.00Accounts Receivable988,257.00254,221.001,242,478.00Allowance for Doubtful Accounts29,648.007,626.0037,274.00Sales9,965,575.009,965,575.00Bad Debt Expenses29,886.0029,886.00a. Accounts Receivable balance as of Dec 31, 2010 is $ 1,242,478.00 b. Allowance for Doubtful Accounts balance as of Dec 31, 2010 is $ 37,274.00Case 5-1 Question 31 flow RatioCurrent Asset=13,574,107.00=9.4915Current Liabilities1,430,132.00Current AssetCash10,360,438.00Accounts Receivable1,242,478.00Allowance for Doubtful Accounts(37,274.00)U.S treasury Securities274,060.00Inventories1,734,405.00Total Current Asset13,574,107.002Acid Test RatioCurrent fiscal Asset=11,839,702.00=8.2787Current Liabilities1,4 30,132.00Current Monetary AssetCash10,360,438.00Accounts Receivable1,242,478.00Allowance for Doubtful Accounts(37,274.00)U.S Treasury Securities274,060.00Total Current Monetary Asset11,839,702.003Days ReceivableAccounts Receivable=1,242,478.00=45.5071DaysSales / 36527,302.95