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Please show solution steps Prior to the year-end adjustment to record bad debt expense for 2022, Prep Company reports the following accounts and balances Allowance
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Prior to the year-end adjustment to record bad debt expense for 2022, Prep Company reports the following accounts and balances Allowance for Doubtful Accounts $2,000 credit balance Bad Debt Expense 0 Accounts Receivable 200,000 Cash collections on accounts receivable during 2022 amounted to $500,000. Credit sales during 2022 amounted to $800,000, and it was estimated that 2% of these credit sales made in 2022 would ultimately become uncollectible. Required: A. Calculate the bad debt expense for 2022. B. Determine the adjusted 2022 year-end balance of the allowance for doubtful accounts. C. Determine the net realizable value of accounts receivable for the December 31, 2022 balance sheetStep by Step Solution
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