ngageNOwv2] Online teach × gagenow.com/ilrn/takeAssignment/takeAssignment Main.d

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ngageNOwv2] Online teach × gagenow.com/ilrn/takeAssignment/takeAssignment Main.do?invoker-assignm eBook e Show Me How Calculator Print item Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $3,460 ,000; Allowance for Doubtful Accounts has a debit balance of $12,500; and sales for the year total $46,300,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $245,000. 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. Check My Work Previou 810 PM 4/10/2018

Explanation / Answer

Rreq A: Amount of adjusting entry: 257500 Note: Amount adjustment required: Required balance of Allowance at the end (as per ageing) 245000 Add: Actual debit balance in Allowance 12500 Adjustment required for amount 257,500 Req B: Adjusting balance of accounts as folows: Accounts receivable (No change) 3,460,000 Allowwance for doubtful accounts (-12500+257500) 245000 Bad Debts expense 257,500 Req C: Net realizable of Accounts receivable: Accounts receivable (Gross) 3,460,000 Less: Allowance for doubtful accounts 245,000 Net realisable value of Accounts receivable 3,215,000

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