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At the end of the current year, Accounts Receivable has a balance of $126,800; Allowance for Doubtful Accounts has a debit balance of $3,300, and

At the end of the current year, Accounts Receivable has a balance of $126,800; Allowance for Doubtful Accounts has a debit balance of $3,300, and sales for the year total $1,175,000. Bad debt expense is estimated at of 1% of 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

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