Assume that your company's first three sales were made on account in 2016 as follows: Minnie,...

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Assume that your company's first three sales were made on account in 2016 as follows: Minnie, Donald, Mickey, $1,000 $1,000 $1,000 Assume also that none of the accounts are due until 2017 but it is probable that one of the accounts will turn out to be uncollectible. However as of 12/31/16 you do not know which specific account will be uncollectible. Based on these facts, how much is the net realizable value of accounts receivable? What journal entry is needed to record bad debt expense for 2016? Refer to the facts in the preceding question. Assume that in 2017 it is determined that Donald's account will not be collected and should be written off as a bad debt. What journal entry is needed to write off the uncollectible account? How much is the net realizable value of accounts receivable just before and just after the write-off of the bad account? Assume that your company's first three sales were made on account in 2016 as follows: Minnie, Donald, Mickey, $1,000 $1,000 $1,000 Assume also that none of the accounts are due until 2017 but it is probable that one of the accounts will turn out to be uncollectible. However as of 12/31/16 you do not know which specific account will be uncollectible. Based on these facts, how much is the net realizable value of accounts receivable? What journal entry is needed to record bad debt expense for 2016? Refer to the facts in the preceding question. Assume that in 2017 it is determined that Donald's account will not be collected and should be written off as a bad debt. What journal entry is needed to write off the uncollectible account? How much is the net realizable value of accounts receivable just before and just after the write-off of the bad account?

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Based on the given facts lets analyze the net realizable value of accounts receivable and the necessary journal entries 1 Net Realizable Value of Acco... View the full answer