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Bad Debt Expense Flash Co. makes all of its sales on account and uses the...

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Accounting

Bad Debt Expense Flash Co. makes all of its sales on account and uses the allowance method to account for uncollectible accounts. On January 1, 2020, Flashs accounts receivable were $17,800,000 and the balance in its allowance for doubtful accounts was $24,500 (normal balance). During 2020, Flash recorded credit sales of $93,000,000 and collected $97,600,000 on account from its customers. Also, during 2020, Flash wrote off $32,900 of accounts receivable as uncollectible. Based on an aging of accounts receivable at 12/31/20, the company has determined that $28,700 of the 12/31/20 accounts receivable may eventually become uncollectible.

Requirement 1: Prepare the journal entry that Flash used to write-off the 32,900 of accounts receivable during 2020. (2 points)

Requirement 2: Prepare journal entry to record the year-end adjusting entry for bad debt expense. Show your work. (4 points)

Requirement 3: What is the net realizable value of the accounts receivable at 12/31/20? Show your work. (5 points)

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