Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $555,000; Allowance for Doubtul Accounts hes a debit balance of $5,000; and sales for the year total $2,500,000. Bad t expense is estimated at1/2 of 1%or sales. a. Determine the amount of the adjusting entry for uncollectible accounts 19,500X b. Determine the adjusted balances of Accounts Recelvable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Deblit (Credit) s 555,000 Accounts Recetvable Allowance for Doubtfu Accounts Bad Debt Expense 24,500x 19,500| x e. Determine the net realizable value of accounts recelvable. 530,500 X Remember that since accounts receivable are created by credit sales, uncollectible accounts can be estimated as a percent of credit sales. If the portio of credit sales to sales is relatively constant, the percent 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 Previous Next 0 more Check My Workuses remaining