Question

At the end of the current year, Accounts Receivable has a balance of $1,200,000; Allowance for Doubtful Accounts has a debit balance of $5,000; and net sales for the year total $6,200,000. Bad debt expense is estimated at 1/2 of 1% of net sales.
Determine
(1) The amount of the adjusting entry for uncollectible accounts;
(2) The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense;
(3) The net realizable value of accounts receivable.



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  • CreatedJuly 17, 2012
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