Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $610,000; Allowance for Doubtful Accounts has a debit balance of $5,500; and sales for the year total $2,750,000. Bad debt expense is estimated at 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. $