At the end of the current year, Accounts Receivable has a balance of $$595,000$; Allowance for

Doubtful Accounts has a debit balance of $$5,500$; and sales for the year total $$2,680,000.$

Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as

$$28,600.$

a$.$ Determine the amount of the adjusting entry for uncollectible accounts.

b$.$ Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts,

and Bad Debt Expense.

Accounts Receivable

Allowance for Doubtful Accounts

Bad Debt Expense

c$.$ Determine the net realizable value of accounts receivable.

$ $x$

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The analysis of receivables method is based on the assumption that the longer an

account receivable is outstanding the less likely that it will be collected.

The amount of the adjusting entry is the amount that will yield an adjusted balance for

Allowance for Doubtful Accounts equal to the estimated balance.