Pharoah Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $520,000...

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Pharoah Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $520,000 (debit) Allowance for doubtful accounts (unadjusted) 5,200 (debit) The company estimates that 2% of accounts receivable will become uncollectible. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense 20,800 Allowance for Doubtful Accounts 20,800 (b) What is the ending (adjusted) balance in Allowance for Doubtful Accounts? Ending (adjusted) balance in Allowance for Doubtful Accounts 15600 (c) What is the cash (net) realizable value? Cash (net) realizable value 504,400 %24 Pharoah Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $520,000 (debit) Allowance for doubtful accounts (unadjusted) 5,200 (debit) The company estimates that 2% of accounts receivable will become uncollectible. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense 20,800 Allowance for Doubtful Accounts 20,800 (b) What is the ending (adjusted) balance in Allowance for Doubtful Accounts? Ending (adjusted) balance in Allowance for Doubtful Accounts 15600 (c) What is the cash (net) realizable value? Cash (net) realizable value 504,400 %24

Answer rating: 100% (QA)

REQUIRED a Account title and Debit Credit Explanati... View the full answer