Financial Accounting

Homework Uncollectible Accounts

Problem 1.

At the end of the current year, December 31, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales.

Determine the amount of the adjusting entry for uncollectible accounts and journalize the entry.

Date Account Title Debit Credit

Determine the adjusted balances of the following items, and show your work.

Accounts Receivable $_______________________

Allowance of Doubtful Accounts $______________________

Bad Debt Expense $_________________________

Net realizable value of accounts receivable $_____________________________