Question
At the end of the current year, Accounts Receivable has a balance of $794,380; Allowance for Doubtful Accounts has a credit balance of $7,713; and
At the end of the current year, Accounts Receivable has a balance of $794,380; Allowance for Doubtful Accounts has a credit balance of $7,713; and sales for the year total $2,820,000. 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. $
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
