Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $825,000; Allowance for Doubtful Accounts has a debit balance of $7,500; and sales for the year total $3,710,000. Bad debt expense is estimated at 3/4 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. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the net realizable value of counts receivable. Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $875,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $3,940,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,800. 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. Effect of Doubtful Accounts on Net Income During its first year of operations, Master Plumbing Supply Co. had sales of $320,000, wrote off $5,100 of accounts as uncollectible using the direct write-off method, and reported net income of $35,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible