Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $695,000; Allowance for Doubtful Accounts has a debit balance of $6,500, and sales for the year total $3,130,000. Bad debt expense is 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.

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $695,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,130,000. Bad debt expense is estimated at 1/4 of 1% of sales.

1. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1

2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

Accounts Receivable	$fill in the blank 2
Allowance for Doubtful Accounts	$fill in the blank 3
Bad Debt Expense	$fill in the blank 4

3. Determine the net realizable value of accounts receivable. $fill in the blank 5

3. Determine the net realizable value of accounts receivable.