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At the end of the current year, Accounts Receivable has a balance of $869,690; Allowance for Doubtful Accounts has a credit balance of $5,545; and
At the end of the current year, Accounts Receivable has a balance of $869,690; Allowance for Doubtful Accounts has a credit balance of $5,545; and credit sales for the year total $2,610,000. Bad debt expense is estimated at 1/2 of 1% of credit 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. c. Determine the net realizable value of accounts receivable. $
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