Percent of Sales Method

At the end of the current year,Accounts Receivablehas a balance of $475,000;Allowance for Doubtful Accountshas a debit balance of $4,500; and sales for the year total $2,140,000.Bad debt expenseis estimated at 3/4 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.

Adjusted Balance

Debit (Credit)

Accounts Receivable $

Allowance for Doubtful Accounts $

Bad Debt Expense $

c.Determine thenet realizable valueof accounts receivable.

$