Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $660,000; Allowance for Doubtful Accounts has a credit balance of $6,000; and sales for the year total $2,970,000. Bad debt expense is estimated at 1.1% of sales.

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

$

2. Determine the adjusted balances 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.

$