Answered step by step
Verified Expert Solution
Question
1 Approved Answer
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $751,658 and Allowance for Doubtful
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $751,658 and Allowance for Doubtful Accounts has a balance of $22,181. What is the net realizable value of the accounts receivable? Oa. $773,839 Ob. $729,477 Oc. $751,658 Od. $22,181 A 60-day, 9% note for $30,000, dated May 1, is received from a customer on account. The maturity value of the note is Oa. $450 Ob. $30,450 Oc. Od. $32,700 $30,000 At the end of the current year, Accounts Receivable has a balance of $124,800; Allowance for Doubtful Accounts has a debit balance of $3,924; and sales for the year total $937,000. Bad debt expense is estimated at 1/2 of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $ 124,800 Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started