Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $900,000, Allowance for Doubtful Accounts has a credit balance of $8,000, and sales for the year total $4,050,000. Bad debt expense is estimated at 1/4 of 1% of sales.

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

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

	Adjusted Balance Debit (Credit)
Accounts Receivable	$fill in the blank 2
Allowance for Doubtful Accounts	$fill in the blank 3
Bad Debt Expense	$fill in the blank 4

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

Note Receivable

Quick Tire and Lube received a 120-day, 6% note for $24,000, dated June 12, from a customer on account. Assume 360 days in a year.

a. Determine the due date of the note.

b. Determine the maturity value of the note. $fill in the blank bf8dc3f8804701c_2

c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank.

		fill in the blank 6c617900204403d_2	fill in the blank 6c617900204403d_3
		fill in the blank 6c617900204403d_5	fill in the blank 6c617900204403d_6
		fill in the blank 6c617900204403d_8	fill in the blank 6c617900204403d_9