At the beginning of the year, XYZ had $250,000 in Accounts Receivable and $45,000 in Allowance for Doubtful Accounts. During the year XYZ sold $1,500,000 of product on account and collected $1,350,000 in cash. In addition, a customer declared bankruptcy so XYZ wrote-off $30,000 of outstanding Accounts Receivable.

Question 1: Determine the ending balance in Accounts Receivable and Allowance for Doubtful Accounts before any adjusting entry or provision for bad debt expense is recorded.

Question 2: Assuming ABC estimates uncollectible accounts as 10% of outstanding Accounts Receivable, prepare the required adjusting entry to record bad debt expense at year end.

Question 3: Using your answer to question 2, provide the Net Realizable Value of Accounts Receivable as of year-end.