Qinshan Co. uses the percentage of sales approach to record bad debt expense. It estimates that 1.5%

Question:

Qinshan Co. uses the percentage of sales approach to record bad debt expense. It estimates that 1.5% of net credit sales will become uncollectible. Credit sales are $950,000 for the year ended April 30, 2017; sales returns and allowances are $60,000; sales discounts are $20,000; accounts receivable are $310,000; and the allowance for doubtful accounts has a credit balance of $6,000.

(a) Prepare the adjusting entry to record bad debt expense in 2017.

(b) Calculate the net realizable value of accounts receivable on April 30, 2017.

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...