Percent of Sales Method

At the end of the current year, A claim against the customer created by selling merchandise or services on credit.Accounts Receivable has a balance of $415,000; The contra asset account for accounts receivable.Allowance for Doubtful Accounts has a debit balance of $3,500; and sales for the year total $1,870,000. The operating expense incurred because of the failure to collect receivables.Bad debt expense is estimated at 1.25% 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 The amount that is expected to be collected or realized.net realizable value of accounts receivable. $