Print Item Percent of Sales Method At the end of the current year, Accounts Rece

Question

Print Item Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $860,000; Allowance for Doubtul Accounts has a credit balance of $7,500, and sales for the year total $3,870,000. Bad debt expense is estimated at 1.1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the net realizable value of accounts recelvable. Next Previous .y uees remaining

Explanation / Answer

1) Adjusting entry for uncollectible accounts 3,870,000*1.1% 42570 2) Accounts receivable 860,000 Allowance for Doubtful accounts 50070 Bad debts expense 42570 3) net realizable value 809,930

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