Net realizable value equals Accounts receivable less a reserve for estimated uncollectible accounts Accounts receivable plus allowance for doubtful account expense Accounts receivable plus interest receivable and late fees A good idea you came up with in the shower this morning Question 22 (3 points) If the Allowance for Doubtful Accounts has a debit balance prior to adjustment, one could infer that An error has been made Estimated uncollectible accounts expense was overstated More accounts were written off than estimated The direct write-off method is used Question 23 (3 points) When using the allowance method, and the estimated expense is based on the percent of sales approach, We do NOT consider the existing balance in the allowance for doubtful accounts We MUST consider the existing balance in the allowance for doubtful accounts Only Jodelle is allowed to prepare the adjusting journal entry Anyone can prepare the adjusting journal entry, but only Brett will get it correct. (any names that appear to be similar to classmates is purely coincidental)