Analysis ofReceivablesMethod

At the end of the current year,Accounts Receivablehas a balance of $680,000;Allowance for Doubtful Accountshas a debit balance of $6,000; and sales for the year total $3,060,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,200.

a.Determine the amount of the adjusting entry for uncollectible accounts.

$

b.Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, andBad Debt Expense.

Accounts Receivable$

Allowance for Doubtful Accounts$

Bad Debt Expense$

c.Determine thenet realizable valueof accounts receivable.

$