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Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $485,000; Allowance for Doubtful Accounts has a credit
Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $485,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,180,000. Bad debt expense is estimated at 3/4 of 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. $
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