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Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $495,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,230,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts.$ 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 $   c. Determine the net realizable value of accounts receivable.$

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $495,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,230,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts.$ 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 $   c. Determine the net realizable value of accounts receivable.$

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...
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Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $495,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,230,000. Bad debt expense is estimated at 1/4 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 $

 

c. Determine the net realizable value of accounts receivable.
$

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