Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. basic math
  3. percent of sales method at the end of the current

Percent of sales method At the end of the current year Accounts Receivable has a...

60.1K

Verified Solution

Question

Basic Math

image

Percent of sales method At the end of the current year Accounts Receivable has a balance of 450 000 Allowance for Doubtful Accounts has a credit balance of 4 000 and sales for the year total 2 030 000 Bad debt expense is estimated at 1 4 of 1 of sales a Determine the amount of the adjusting entry for uncollectible accounts 5 075 V b Determine the adjusted balances of Accounts Receivable Allowance for Doubtful Accounts and Bad Debt Expense Accounts Receivable 450 000 V Allowance for Doubtful Accounts Bad Debt Expense c Determine the net realizable value of accounts receivable Feedback X 5 075 Check My Work a Remember that since accounts receivable are created by credit sales uncollectible accounts can be estimated as a percent of credit sales If the portion of credit sales to sales is relatively constant the percent may be applied to total sales b Under the percent of sales method the amount of the adjustment is the amount estimated for Bad Debt Expense c Remember that net realizable value is the amount that is expected to be collected or realized

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

General HyThere, Inc., is a manufacturer of hydraulic machine tools. It has had a history leakage...

Psychology
1.2K views

Behavioral approaches for autistic spectrum disorders: Why are behavioral approaches to autism the most effective ones? No other...

Basic Math
1.2K views

Dole Pineapple Inc. is concerned that the 16-ounce can of sliced pineapple is being overfilled. Assume...

Biology
1.2K views

6 1 Black bears can be found in several areas in Texas and Mexico The...

Physics
1.2K views

An ideal gas expands from initial volume V to final volume V in two ways...

Calculus
1.2K views

ple gives the increase or decrease in the number of donors to a college athletics...

Calculus
1.2K views

A particle is moving along the curve f a As it passes throught the point...

Algebra
1.2K views

44 Which graph represents the following equation y x 1 A B C D 5...

Algebra
1.2K views

x3 12x 32x

Accounting
1.2K views

As a result of a slowdown in operations, Tradewind Stores is offering employees who have...

Finance
1.2K views

New Town Bank offers you a line of credit of $50,000 with an interest rate...

Accounting
1.2K views

Net present value method, internal rate of return method, and analysis for a service company...