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7) (15 pts) At the end of the month, after recording the uncollectible receivables, using the allowance method, the account balances are as follows: $10,000

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7) (15 pts) At the end of the month, after recording the uncollectible receivables, using the allowance method, the account balances are as follows: $10,000 $128,000 $2,000 $350,000 $1,000 Cash Accounts Receivable Allowance for Bad Debts Sales Bad Debts Expense DR Balance The CFO estimates Bad Debts Expense to be 4% of accounts receivables. a) Using the Percent-of-Receivables method, journalize the adjusting entry for Bad Debts Expense. b) What is the net realizable value of the Accounts Receivable account? 8) (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 $128,000 $2,000 $350,000 $1,000 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

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