Question 1:

At the end of the current year, Accounts Receivable has a balance of $800,000; Allowance for Doubtful Accounts has a credit balance of $7,500; and sales for the year total $3,500,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated at $30,000.

Determine:

1. the amount of the adjusting entry for uncollectible accounts;
2. the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and
3. the net realizable value of accounts receivable.