Percent of Sales Method

At the end of the current year, Accounts Receivables has a balance of $405,000; Allowance for Doubtful Accounts has a debit balance of $3500; and sales for the year total $1,820,000 . But Bad Debt Expense is estimated at 1/4 of 1% of sales.

1. Determine the amount of the adjusting entry for uncollectable accounts.

$_____________

2.Determine the adjusted balance of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense

Accounts Receivable $____________

Allowance For Doubtful Accounts $___________

Bad Debt Expense $___________

3. Determine the net realizable value of accounts receivable

$_________