Question
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $745,000; Allowance for Doubtful Accounts has a debit
Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $745,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,350,000. 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 2 |
| 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. $fill in the blank 5
Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $745,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,350,000. 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 2 |
| 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. $fill in the blank 5
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Electronic Health Records An Audit And Internal Control Guide
Authors: Rebecca S. Busch
1st Edition
0470258209, 978-0470258200
