Question
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
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. $
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