Analysis of Receivables Method At the end of the current year, Accounts Receivab

Question

Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $475,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,140,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $20,300. 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 $(____). c. Determine the net realizable value of accounts receivable $(____).

Explanation / Answer

a)

b)

c)

d)

e)

Amount of the adjusting entry for Uncollectible accounts ($20,300+$4,500) $ 24,800 (Note: Allowance for doubtful accounts showing a debit balance. So it should add to get a credit balance)

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