Question
Percent of sales method At the end of the current year, Accounts Receivable has a balance of $500,000; Allowance for Doubtful Accounts has a credit
Percent of sales method
At the end of the current year, Accounts Receivable has a balance of $500,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,250,000. Bad debt expense is estimated at 1/4 of 1% of sales.
a. Determine the amount of the adjusting entry for uncollectible accounts. fill in the blank 1 of 1$
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 | $fill in the blank 4 |
c. Determine the net realizable value of accounts receivable. fill in the blank 1 of 1$
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