Designer Jean Industries began 2010 with accounts receivable of $650,000 and a balance in the allowance for uncollectible accounts of $(19,500). During 2010, credit sales totaled $7,290,000 and cash collected from customers totaled $7,500,000. Actual write-offs of specific accounts receivable in 2010 were $20,000. At the end of the year, an accounts receivable aging schedule indicated a required allowance of $12,600. No accounts receivable previously written off were collected.
1. Record the transactions (including the beginning balances) into the accounting equation for 2010.
2. What is the net realizable value of accounts receivable at year end?
3. What is the bad debts expense for the year 2010?