Percent of Sales Method ?the end of the ament Aconts Receivable has a balance of

Question

Percent of Sales Method ?the end of the ament Aconts Receivable has a balance of $645,000; Allowance for Doubení Accourti hai a debit balance one,ooo, and sales for the yer 2.900.000. Bad debt expense is estimated at 1/4 of 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 receivable.

Explanation / Answer

1 Amount of adjusting entry=2900000*0.25%= $7250 2 Accounts Receivable 645000 Allowance for Doubtful accounts 1250 =7250-6000 Bad debts expense 7250 3 Net realizable value=645000-1250= $643750

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.