At December 31 of the current year, Account Receivable has a balance of $900,000, the Allowence for Uncollectible Accounts has a debit balance of $1,000 and net credit sales for the year are $3,000,000. Using the aging-of-receivables method, the balance of Allowence for Uncollectible Accounts is estimated at $30,000. Required: 1. Journalize the adjusting entry. Omit the explanation. 2. Determine the net realizable value of accounts receivable at the end of the year.

At December 31 of the current year, Account Receivable has a balance of $900,000, the Allowence for Uncollectible Accounts has a debit balance of $1,000 and net credit sales for the year are $3,000,000. Using the aging-of-receivables method, the balance of Allowence for Uncollectible Accounts is estimated at $30,000. Required: 1. Journalize the adjusting entry. Omit the explanation. 2. Determine the net realizable value of accounts receivable at the end of the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Oo.151. Subject :- Account