Rays GamePlace sells all the hottest gear and video games.

On January 1, 20X7, Rays had the following account balances:

Accounts receivable 27000

less allowance for doubtful accounts 4000 equals net accounts receivable 23000

During 20X7, Rays wrote off $6,000 in uncollectible accounts. Make this journal entry. During 20X7, Rays made credit sales of $145,000 and collected $115,000 of accounts receivable. Record these journal entries.

At the end of the year, Rays determines that approximately 7 percent of its ending accounts receivable balance will not be collected. Rays uses the percentage of receivables method of calculating bad debts. Make the necessary journal entry. What is Rays net realizable value for accounts receivable to be shown on the balance sheet at the end of the year.