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At the end of the current year, Accounts Receivable has a balance of $150,810; Allowance for Doubtful Accounts has a debit balance of $3,895; and
At the end of the current year, Accounts Receivable has a balance of $150,810; Allowance for Doubtful Accounts has a debit balance of $3,895; and sales for the year total $1,150,000. Bad debt expense is estimated at 1/2 of 3% of 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. Allowance for Doubtful Accounts has a debit balance of $459 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 1% of sales. If net credit sales are $880,500, the amount of the adjusting entry to record the estimate of the uncollectible accounts is Oa. $9,264 Ob. $8,805 Oc. $459 Od. $8,346
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