At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000.

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.

$

Fill in the blanks related to the characteristics of a promissory note:

1. The party promising to pay the note is called the

face

maker

maturity or due

term

.

2. The amount for which the note is written is called the

face

maker

maturity or due

term

amount.

3. The date the note is to be paid is the

face

maker

maturity or due

term

date.

4. The time between the date when a note is written and the time it must be paid is called the

face

maker

maturity or due

term

of the