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At the end of the current year, Accounts Receivable has a balance of $737,400; Allowance for Doubtful Accounts has a credit balance of $5,008; and
At the end of the current year, Accounts Receivable has a balance of $737,400; Allowance for Doubtful Accounts has a credit balance of $5,008; and sales for the year total $2,305,000. Bad debt expense is estimated at 1/2 of 1% of net sales. a. Determine the amount of the adjusting entry for bad debt expense. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning Inventory 5 Sale 17 Purchase 30 Sale 23 units @ $13 11 units 21 units @ $16 14 units Assuming a perpetual inventory system and the last-in, first-out method: a. Determine the cost of the goods sold for the September 30 sale. b. Determine the inventory on September 30. $
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