The following transactions were completed by Clark Management Company during the current fiscal year ended December 31:

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The following transactions were completed by Clark Management Company during the current fiscal year ended December 31:image text in transcribed

that \(\$ 16,750\) will be uncollectible. Journalized the adjusting entry.
{Instructions}
1. Record the January 1 credit balance of \(\$ 12,550\) in a \(\mathrm{T}\) account for Allowance for Doubtful Accounts.
2. Journalize the transactions. Post each entry that affects the following selected \(T\) accounts and determine the new balances:image text in transcribed

3. Determine the expected net realizable value of the accounts receivable as of December 31 .
4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of \(1 / 4\) of \(1 \%\) of the net sales of \(\$ 7,126,000\) for the year, determine the following:

a. Bad debt expense for the year.

b. Balance in the allowance account after the adjustment of December 31.

c. Expected net realizable value of the accounts receivable as of December 31.

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Financial Accounting

ISBN: 9780324380675

10th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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