Question
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $840,000; Allowance for Doubtful Accounts has a credit
Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $840,000; Allowance for Doubtful Accounts has a credit balance of $7,500; and sales for the year total $3,780,000. Bad debt expense is estimated at 3/4 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.
| Adjusted Balance Debit (Credit) | |
| Accounts Receivable | $ |
| Allowance for Doubtful Accounts | $ |
| Bad Debt Expense | $ |
c. Determine the net realizable value of accounts receivable. $
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Auditing Self Storage Preventing Employee Theft And Embezzlement The Majority Of Self Storage Managers Are Trustworthy Responsible Reliable And Honest Embezzlement Is Often A Crime Of Opportunity
Authors: Tom Litton, Poppy Behrens, Erica Shatzer, George Bernal
1st Edition
0977157814, 978-0977157815
