Percent of Sales Method $\frac{1}{4}$ of $1\%$ of sales.

a$.$ Determine the amount of the adjusting entry for uncoilectible accounts.

$5,500x$

b$.$ Determine the adjusted balances of Accounts Recelvable, Allowance for Doubtful Accounts, and Bad Debt Expense.

Accounts Recelvable

Allowance for Doubtful Accounts

Ead Debt Expense

c$.$ DeterTmine the ned rea det$=1.=$ of accounts recelvable.

TChod My Warix may be applied to total sales.

b$.$ Under the percent of sales method, the amount of the adjustment is the amount estimated for Bad Debt Expense.

C$.$ Remember that net realizable value is the amount that is expected to be collected or realized.