At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales.a. Determine the amount of the adjusting entry for bad debt expense.
b. Determine the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts and Bad Debt Expense.
c. Determine the net realizable value of accounts receivable. $677,000