Accounts Receivable $ 27,000

Less allowance for doubtful accounts (4,000)

Net Accounts Receivable $ 23,000

1. During 20x7,Ray's wrote off $ 7,000 in uncollectible accounts.Make this a journal entry.

2. During 20X7, Ray's made credit sales of $150,000and collected $ 105,000 of accounts receivable.Record these journal entries.

3. At the end of the year, Ray's determines that approximately 7 percent of its ending accounts receivable balance will not be collected.Ray's uses the percentage of receivables methods calculating bad debts. Make the necessary journal entry.

4. What is Ray's net realizable value for accounts receivable to be shown on the balance sheet at the end of the year.

* I am stuck on question 3. Would I multiple 7% and 150,000 -105,000? Thank you.