Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $$635,000$; Allowance for Doubtful Accounts has a debit balance of $$5,500$; and sales for the year total $$2,860,000.$ 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 $fill in the blank $2$

$635,000$

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.