7) (15 pts) At the end of the month, after recording the uncollectible receivables, using the allowance method, the account balances are as follows: Cash Accounts Receivable Allowance for Bad Debts Sales Bad Debts Expense $10,000 $182,000 $3,000 $530,000 $2,000 DR Balance The CFO estimates Bad Debts Expense to be 2% of sales. a) Using the Percent-of-Sales method, journalize the adjusting entry for Bad Debts Expense. b) What is the net realizable value of the Accounts Receivable account? Receivables A 48 Accounts Receivable Bad Debts Expense Allowance for Bad Debts