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At the end of the current year, Accounts Receivable has a balance of $465,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and
At the end of the current year, Accounts Receivable has a balance of $465,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and sales for the year total $2,090,000. Bad debt expense is estimated at 1/4 of 1% of sales. 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. c. Determine the net realizable value of accounts receivable. $ At the end of the current year, Accounts Receivable has a balance of $915,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $4,120,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $36,000. 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. c. Determine the net realizable value of accounts receivable. $
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