Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $465,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and sales for the year total $2,090,000. 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.

Accounts Receivable$fill in the blank 2Allowance for Doubtful Accounts$fill in the blank 3Bad Debt Expense$fill in the blank 4

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