Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $$775,000$; Allowance for Doubtful Accounts has a debit balance of $$7,000$; and sales for the year total $$3,490,000.$ Bad debt expense is estimated at $\frac{1}{4}$ of $1\%$ of 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.

Accounts Receivable

Allowance for Doubtful Accounts

$$

$ $x$

Bad Debt Expense $$

c$.$ Determine the net realizable value of accounts receivable.

$$

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $$775,000$; Allowance for Doubtful Accounts has a debit balance of $$7,000$; and sales for the yea total $$3,490,000.$ Bad debt expense is estimated at $\frac{1}{4}$ of $1\%$ of 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.

Accounts Receivable

Allowance for Doubtful Accounts

Bad Debt Expense

$$

$$

$ $$

$$

c$.$ Determine the net realizable value of accounts receivable.

$ $$