receivables - part 2

Receivables - Part II BE Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $440,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and sales for the year total $1,980,000. Bad debt expense is estimated at 1.1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. 12,000 X 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. 440,000 Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense 11,000 x 3. Determine the net realizable value of accounts receivable. 440,000 x Feedback 3 Receivables - Part II Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $455,000; Allowance for Doubtful Accounts has a debit balance of $4,000; and sales for the year total $2,050,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $18,400. a. Determine the amount of the adjusting entry for uncollectible accounts. 4,950 X b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable 440,000 X Allowance for Doubtful Accounts 15,600 x Bad Debt Expense > 19,600 X c. Determine the net realizable value of accounts receivable. 409,400 x Feedback