At the end of the current year, Accounts Receivable has a balance of $800,000, and credit sales for the year of $3,500,000. Bad debt expense is estimated at 1/2% of sales for this industry. Determine (a) the amount of the adjusting entry for Bad Debt Expense and (b) the net realizable value of accounts receivable a. 4,000 b. 3,496,000 a. 4,000 b. 796,000 a. 17,500 b. 3,482,500 a. 17,500 b. 782,500