7. The following journal entries would be used in one of the two methods of accounting for uncollectible receivables that are written off. Identify each. (a) Bad Debt Expense 450 Accounts Receivable-Billings 450 Answer: 8. At the end of the current year, Accounts Receivable has a balance of $900,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and net sales for the year total $4,000,000. Bad debt expense is estimated at 1/2 of 1% of net sales. Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accoun receivable. Answer: (a) (b) (c)