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CengageNowv2 | Online teach X irn/takeAssignment/takeAssignmentMain.do?invoker assignmeQ Search Calculator eBook Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $1,975,000; Allowance for Doubtlul Accounts has a credit balance of $19,670 Show Me How Print ttem and sales for the year total $28,550,000, Bad Debt Expense is estimated at 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. Previous Next Check My Work 805 PM

Explanation / Answer

Rreq A: Amount of adjusting entry (0.75% of sales i.e. $ 28550,000): 214125 Req B: Adjusting balance of accounts as folows: Accounts receivable (No change) 1,975,000 Allowwance for doubtful accounts (19670+214,125) 233795 Bad Debts expense 214,125 Req C: Net realizable of Accounts receivable: Accounts receivable (Gross) 1,975,000 Less: Allowance for doubtful accounts 233,795 Net realisable value of Accounts receivable 1,741,205

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