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Percent of Sales Method At the end of the current year, Accounts Receivable has a...

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Accounting

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a debit balance of $5,000; and sales for the year total $2,480,000. Bad debt expense is estimated at 3/4 of 1% of sales.

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.

Adjusted Balance Debit (Credit)
Accounts Receivable $
Allowance for Doubtful Accounts $
Bad Debt Expense $

c. Determine the net realizable value of accounts receivable. $

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