Following are the 2010 year-end balances before adjustments: Accounts receivable (AR) ........ $ 80,000 Allowance for uncollectible

Question:

Following are the 2010 year-end balances before adjustments:

Accounts receivable (AR) ........ $ 80,000

Allowance for uncollectible accounts .. $ (2,000)

Net sales ............. $250,000

Using the percentage of sales method, the company estimates 3% of sales will become uncollectible. What is the bad debts expense for 2010? What will be the net realizable value of accounts receivable on the year-end balance sheet?

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...