Question Content Area

Percent of sales method

At the end of the current year, Accounts Receivable has a balance of $705,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and sales for the year total $3,170,000. Bad debt expense is estimated at 1/4 of 1% of sales.

a. Determine the amount of the adjusting entry for uncollectible accounts. fill in the blank 1 of 1$

b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

Line Item Description	Amount
Accounts Receivable	$fill in the blank 2
Allowance for Doubtful Accounts	$fill in the blank 3
Bad Debt Expense	$fill in the blank 4

c. Determine the net realizable value of accounts receivable. fill in the blank 1 of 1$