Question
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $785,000; Allowance for Doubtful Accounts has a credit
Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a balance of $785,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,530,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $32,900.
a. Determine the amount of the adjusting entry for uncollectible accounts.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable | |
Allowance for Doubtful Accounts | |
Bad Debt Expense |
c. Determine the net realizable value of accounts receivable. |
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