At the end of the curment year, Accounts Receivable has a balance of $635,000; A
ID: 2558071 • Letter: A
Question
At the end of the curment year, Accounts Receivable has a balance of $635,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total 2.860,000 using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $21,500 Analysis of Receivables Method Determine the amount of the odjusting entry for uncollectible accounts. b. Determine the adjusted talances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense Accounts Receivable Alowance for Doubtfulil Accounts Bad Debt Expense . Determine the net realzable value of accounts receivableExplanation / Answer
Answer a
Amount of the adjustment entry for uncollectible accounts
= Estimated doubtful accounts - Credit balance in allowance for doubtful accounts = $21,500 - $5,500 = $16,000
Answer b
Answer c
Net realizable value of Accounts Receivable = $635,000 - $21,500 = $613,500
Accounts Receivable $635,000 Allowance for Doubtful Accounts ($5,500 +$16,000) $21,500 Bad Debt Expense $16,000Related Questions
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