Naithalie Corp.s unadjusted trial balance includes the following balances:

Dr. Cr.

Accounts receivable..................................................... $350,000

Allowance for doubtful accounts.................................. ...................................................................................... $ 14,500

Sales Revenue............................................................... ...................................................................................... 720,000

Sales returns and allowances........................................ 30,000

It was determined at year end that 2 accounts totalling $16,500 should be written off. The company uses a hybrid method to record Bad Debts where they use the % of Net Sales method each month, but then at year end they make an adjustment based on % of Accounts Receivable.

Required:

a. Prepare the entry for the customer write offs at year end.

b. Prepare the entry for estimated bad debts during the year assuming the company estimates Bad Debts as 2% of Net Sales (ie Sales Revenue Sales Returns).

c. Prepare the adjusting entry at year end for bad debts assuming that uncollectible accounts are estimated to be 5% of ending accounts receivable (after all above adjustments)

d. Calculate Net Realizable Value of Accounts Receivable on the Balance Sheet at year end?