Question
Chapter 9 Study Guide (Bonus Points) Q- 4 Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of
Chapter 9 Study Guide (Bonus Points) Q- 4
Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a balance of $3,460,000; Allowance for Doubtful Accounts has a debit balance of $12,500; and sales for the year total $46,300,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $245,000.
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.
Accounts Receivable $
Allowance for Doubtful Accounts $
Bad Debt Expense $
c. Determine the net realizable value of accounts receivable.
$
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