13.Analysis of Receivables Method At the end of the current year, Accounts Recei

Question

13.Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $3,750,000, Allowance for Doubtful Accounts has a credit balance of $22,750, and sales for the year total $48,400,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $390,000. 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 $ c. Determine the net realizable value of accounts receivable. $

Explanation / Answer

a

Amount of adjusting entry=390000-22750=$367250

b

Accounts receivable=$3750000

Allowance for Doubtful accounts=$390000

Bad debts expense=$367250

c

Net realizable value=3750000-390000=$3360000

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