Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a debit balance of $5,000; and sales for the year total $2,480,000. Bad debt expense is estimated at 1/4 of 1% of sales.

a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1

b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

Accounts Receivable	$fill in the blank 2
Allowance for Doubtful Accounts	$fill in the blank 3
Bad Debt Expense	$fill in the blank 4

c. Determine the net realizable value of accounts receivable. $fill in the blank 5