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A trial balance before adjustments included the following: Debit Credit $ 300,000 Sales Accounts receivable Allowance for doubtful accounts $ 172,000 4,000 The estimate of
A trial balance before adjustments included the following: Debit Credit $ 300,000 Sales Accounts receivable Allowance for doubtful accounts $ 172,000 4,000 The estimate of uncollectible accounts is made by taking 6% of gross accounts receivable, Requirements: 1. Based on given information, what is the amount of bad debt expense (i.e., the amount of period-end adjustment)? (2.5 points) Answer: NA 2. Based on given information, what is the ending net realizable value for accounts receivable? (2.5 points) Answer: A 2. Based on given information, what is the ending net realizable value for accounts receivable? (2.5 points) Answer: 3. Assume that the allowance for doubtful accounts has a $6,000 debit balance before adjustment and other things being equal. Based on the new assumption, what is the amount of bad debt expense (i.e., the amount of period-end adjustment)? (2.5 points) Answer: A/ Orm
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