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At the end of the current year, Accounts Receivable has a balance of $455,000; 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 $455,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and sales for the year total $2,050,000. Bad debt expense is estimated at 1/2 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. 6,250 X b. Determine the adjusted balances of Accounts Receivable. Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable $455,000 Allowance for Doubtful Accounts 10,250 X Bad Debt Expense 6,250 X c. Determine the cut realizable value of accounts receivable. 444,750 X
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