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Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $685,000; Allowance for Doubtful Accounts has a credit
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $685,000; Allowance for Doubtful Accounts has a credit balance of $9,000; and net sales for the year total $7,400,000. Bad Debt Expense is estimated at of 1% of net sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
c. Determine the net realizable value of accounts receivable. |
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