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At the end of the current year, Accounts Receivable has a balance of $907,940; Allowance for Doubtful Accounts has a credit balance of $5,879; and
At the end of the current year, Accounts Receivable has a balance of $907,940; Allowance for Doubtful Accounts has a credit balance of $5,879; and sales for the year total $2,297,000. 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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