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Please show work and answer A, B and C Percent of Sales Method At the end of the current year, Accounts Receivable has a balance
Please show work and answer A, B and C
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $575,000, Allowance for Doubtful Accounts has a credit balance of $5,000, and sales for the year total $2,590,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $1,475.00 X b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable 575,000 Allowance for Doubtful Accounts 6,475.00 X Bad Debt Expense $ 1,475.00 X C. Determine the net realizable value of accounts receivable. $568,525. XStep by Step Solution
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