A company had credit sales of $5.0 million for the year and estimates their bad debts to be 1% of net credit sales. The accountant for the company is thinking about switching to the aging method and after preparing the aging schedule, the desired estimate equals $48,000. Accounts receivable has a $450,000 balance and the allowance for doubtful accounts has a credit balance of $3,000 prior to adjustment.

What is the net realizable value of accounts receivable after adjustment when the net credit

sales method is used?

What is the net realizable value of accounts receivable after adjustment when the aging method is used?