Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $655,000; Allowance for Doubtful Accounts has a credit balance of $6,000; and net sales for the year total $2,950,000. Bad debt expense is estimated at 3/4 of 1% of net 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. $