At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales.

Determine:

a the amount of the adjusting entry for bad debt expense;

b the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and

c the net realizable value of accounts receivable.

d what is the amount of the allowance for doubtful accounts?

e From the group exercise, what is the Net Realizable Value?

f An aging of a company's accounts receivable indicates that the estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

g To record estimated uncollectible receivables using the allowance method, the adjusting entry would be a