Percent of Sales Method

At the end of the current year,Accounts Receivablehas a balance of $605,000;Allowance for Doubtful Accountshas a debit balance of $5,500; and sales for the year total $2,720,000.Bad debt expenseis estimated at 1/4 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 thenet realizable valueof accounts receivable.

$