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Question

ngageNOWv2 | Online teach X gagenow.com irn/takeAssignment/takeAssignmentMain.do?invoker- assignm eBook B: Show Me How Calculator Print item Percent of Sales Method Accounts Receivable has a balance of $3,460,000; Allowance for Doubtful Accounts has a debit balance of $12,500; At the end of the current year, and sales for the year total $46,300,000. Bad Debt Expense is estimated at, of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense Determine the net realizable value of accounts receivable. Check My Work Next 808 PM /10/2018

Explanation / Answer

Rreq A: Amount of adjusting entry: (0.50% of sales i.e. $ 46300,000) 231500 Req B: Adjusting balance of accounts as folows: Accounts receivable (No change) 3,460,000 Allowwance for doubtful accounts (-12500+231500) 219000 Bad Debts expense 231,500 Req C: Net realizable of Accounts receivable: Accounts receivable (Gross) 3,460,000 Less: Allowance for doubtful accounts 219,000 Net realisable value of Accounts receivable 3,241,000

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