Question
Problem 2. At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of
Problem 2.
At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $2,500,000. Using the aging method (analysis of receivables), the proper balance of Allowance for Doubtful Accounts is estimated as $25,000.
Determine the amount of the adjusting entry for uncollectible accounts and journalize the entry.
Date Account Title Debit Credit
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Determine the adjusted balances of the following items, and show your work.
Accounts Receivable $_______________________
Allowance of Doubtful Accounts $______________________
Bad Debt Expense $_________________________
Net realizable value of accounts receivable $_____________________________
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