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At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and
At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000.
Determine:
A) The amount of the adjusting entry for bad debt expense
B) The adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts, and Bad Debt Expense.
C) The Net Realizable Value of Accounts Receivable.
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