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At the end of the current year, Accounts Receivable has a balance of $740,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and
At the end of the current year, Accounts Receivable has a balance of $740,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and sales for the year total $3,330,000. Bad debt expense is estimated at 1/4 of 1% of sales.
a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1
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.
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