At the end of the current year, Accounts Receivable has a balance of $3,460,000; Allowance for Doubtful

Question:

At the end of the current year, Accounts Receivable has a balance of $3,460,000; Allowance for Doubtful Accounts has a debit balance of $12,500; and net sales for the year total $46,300,000. Bad debt expense is estimated at ½ of 1% of net sales.

Determine

(a) The amount of the adjusting entry for uncollectible accounts;

(b) The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense;

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...