1.After the accounts are adjusted and closed at the end of the fiscal year, Acco

Question

1.After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of accounts receivable?

3.Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be

a.debit Bad Debt Expense; credit Allowance for Doubtful Accounts

b.debit Accounts Receivable; credit Notes Receivable

c.debit Allowance for Doubtful Accounts; credit Accounts Receivable

d.debit Bad Debt Expense; credit Accounts Receivable

Explanation / Answer

1.net realizable value of accounts receivable is $ 2,89,000

2. Debit Bad debt expenses Credit Accounts Receivable since the company is using direct writtoff methis they will be provision for bad debts will be created

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