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tMain.do?invoker assignm WSearch engagenow.com/ilrn/takeAssigns Print tem eBook r Show Me How Calculator Percent of Sales Method At the end of the current year, sales for the year total $2,680,000. Bad debt expense is estimated at 1/4 of 1% of sales. Accounts Receivable has a balance of $595,000; Allowance for Doubtful Accounts has a credit balance of 1. Determine the amount of the adjusting entry for uncollectible accounts. 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts Accounts Receivable llowance for Doubtful Accounts Bad Debt Expense Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. 3. Determine the net realizable value of accounts receivable. Previous Next Check My Work 806 PM

Explanation / Answer

Answer = 1) Sales for the year = $            26,80,000 1% of the Sales = $                  26,800 1/4 of 1% sales is adjustable amount =1/4 of $ 26,800 = $                    6,700 Answer = $ 6,700 Answer =2) Account Receivable = $              5,95,000 Less: Allowance for Doubtful Debts = $                    6,700 Net Account Receivable Balance $              5,88,300 Allowance for doubtful debts : Opening balance for allowance for Doubtful debts $                    5,500 Add: Allowance for the current period $                    6,700 Closing Balance of Allowance for Doubtfull Debts $                  12,200 Bad Debt Expenses = (Debited to allowance for doubtful in current perod) $                    6,700 Answer = 3) Account Receivable = $              5,95,000 Less: Allowance for Doubtful Debts = $                  12,200 Net Account Receivable Balance $              5,82,800

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