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Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $720,000; Allowance for Doubtful Accounts has a credit

Analysis of Receivables Method

At the end of the current year, Accounts Receivable has a balance of $720,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and sales for the year total $3,240,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $26,000.

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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