Question
Qinshan Ltd. estimates that 2% of total accounts receivable will become uncollectible. Accounts receivable at December 31, 2014, are $249,960. Determine the required balance
Qinshan Ltd. estimates that 2% of total accounts receivable will become uncollectible. Accounts receivable at December 31, 2014, are $249,960. Determine the required balance in the allowance for doubtful accounts and the net realizable value of the accounts receivable. (Round answers to 0 decimal places, e.g. 5,275.) Allowance for doubtful accounts Net realizable value $ $1 The allowance for doubtful accounts has an unadjusted debit balance of $2,420 at December 31, 2014. Prepare the adjusting entry to record bad debt expense in 2014. (Hint: Use T accounts to calculate the amount of the adjustment.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts, Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Dec. 31 Debit Credit
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