At the end of the current year, Accounts Receivable has a balance of $734,600; Allowance for Doubtful Accounts has a credit balance of $5,933; and sales for the year total $3,570,000. Bad debt expense is estimated at of 1% of sales.

a. Determine the amount of the adjusting entry for bad debt expense. $fill in the blank 1

b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

	Adjusted Balance
Accounts Receivable	$fill in the blank 2
Allowance for Doubtful Accounts	fill in the blank 3
Bad Debt Expense	fill in the blank 4

c. Determine the net realizable value of accounts receivable. $fill in the blank 5

Question 2

A machine with a cost of $61,600 has an estimated residual value of $3,305 and an estimated life of 5 years or 16,655 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

a.$12,320

b.$24,640

c.$14,784

d.$23,318