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    Bad debt expense & non-current assets

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    The following is a portion of the current assets section of the balance sheets of Spectrum, Inc., at December 31, 2011 and 2010:

    Accounts receivable, less allowance for bad 12/31/11 12/31/10
    debts of $9,634 and $15,914, respectively. $ 173,709 $ 220,461

    If $11,774 of accounts receivable were written off during 2011, what was the amount of bad debts expense recognized for the year?
    Bad debt expense _________

    --------------------------------------------------------------------------------

    On November 1, 2010, Myers Co. paid its landlord $3,600 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2011, at which time the contract may be renewed.

    If the advance payment made on November 1, 2010, had covered an 18-month lease period at the same amount of rent per month, how should Myers Co. report the prepaid amount on its December 31, 2010, balance sheet?

    Non-current asset $ _________
    Current asset $ ___________

    © BrainMass Inc. brainmass.com October 10, 2019, 3:34 am ad1c9bdddf
    https://brainmass.com/business/current-assets/bad-debt-expense-non-current-assets-425968
    $2.19