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Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $825,000, Allowance for Doubtful Accounts has a debit
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $825,000, Allowance for Doubtful Accounts has a debit balance of $7,500, and sales for the year total $3,710,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $39,000. a. Determine the amount of the adjusting entry for uncollectible accounts. $ 31,500 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ 825,000 Allowance for Doubtful Accounts 39,000 Bad Debt Expense c. Determine the net realizable value of accounts receivable. $ 786,000
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