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signment/takeAssignmentMain.doinvoker-assignments&takeAssignmentSessionLocator..; Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $400,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and sales for the year total $1,800,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $13,000. 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. 2 more Check My Work uses remaining Previous Next

Explanation / Answer

a Estimated allowance for doubtful accounts 13000 Add Allowance for doubtful account (Debit balance) 3500 Adjusting entry amount 16500 Bad debt expense 16500           Allowance for doubtful accounts 16500 b Accounts receivable 400000 Allowance for doubtful accounts 13000 Bad debt expense 16500 c Accounts receivable (gross ) 400000 Less Allowance for doubtful accounts 13000 Net realizable value 387000

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