Braeburn Company wrote off the following accounts receivable as uncollectible for the year ended December 31, 2015:
Customer Amount
Brandon Peele .......... $ 5,000
Clyde Stringer .......... 9,000
Ned Berry .......... 13,000
Mary Adams .......... 2,000
Gina Bowers .......... 4,500
$33,500
a. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts under the percent of receivables method. The company recorded $2,750,000 of credit sales during 2015. The balances of Accounts Receivable and Allowance for Doubtful Accounts prior to the write-offs are $480,000 and $12,400, respectively, and the company expects 5% of the receivables to be uncollectible.
b. Determine the net realizable value of accounts receivable as at December 31, 2015.