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6 ) At the end of the current year, Accounts Receivable has a balance of $1,400,000, Allowance for Doubtful Accounts has a debit balance of
6) At the end of the current year, Accounts Receivable has a balance of $1,400,000, Allowance for Doubtful Accounts has a debit balance of $2,250, and net sales for the year total $9,500,000.Bad debt expense is estimated at 1/2 of 1% of net sales.
Determine (1) the amount of the adjusting entry for uncollectible accounts;
(2) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad debt Expense; and
(3) the net realizable value of accounts receivable. (15MARKS)
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