Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $440,000, Allowance for Doubtful Accounts has a credit balance of $4,000, and sale for the year total $1,980,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $21,600. a. Determine the amount of the adjusting entry for uncollectible accounts. 22,400 X b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts 421,600 X 18,400 X 22,400 X Bad Debt Expense c. Determine the net realizable value of accounts receivable 417,600 X

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a balance of $440,000, Allowance for Doubtful Accounts has a credit balance of $4,000, and sales
for the year total $1,980,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $21,000.
Show Me How
a. Determine the amount of the adjusting entry for uncollectible accounts.
22,400 X
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable
Allowance for Doubtful Accounts
421,600 X
18,400 X
22,400 X
Bad Debt Expense
c. Determine the net realizable value of accounts receivable.
417,600 X
Check My Work
Print Hom
Oh My W
5
The analysis of receivables method is based on the assumption that the longer an account receivable is outstanding the less kaly that it will be
collected
The amount of the adjusting entry the amount that will yield an adjusted balance for allowance for Doubthul Accounts.
Previou
835 PM
CO
Transcribed Image Text:AL eBook Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $440,000, Allowance for Doubtful Accounts has a credit balance of $4,000, and sales for the year total $1,980,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $21,000. Show Me How a. Determine the amount of the adjusting entry for uncollectible accounts. 22,400 X b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts 421,600 X 18,400 X 22,400 X Bad Debt Expense c. Determine the net realizable value of accounts receivable. 417,600 X Check My Work Print Hom Oh My W 5 The analysis of receivables method is based on the assumption that the longer an account receivable is outstanding the less kaly that it will be collected The amount of the adjusting entry the amount that will yield an adjusted balance for allowance for Doubthul Accounts. Previou 835 PM CO
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