At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful

Question:

At the end of the current year, 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 Allowance of Doubtful Accounts and Bad Debt Expense.
c. Determine the net realizable value of $677,000

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...