At the end of the current year, Accounts Receivable has a balance of $440,000; Allowance for Doubtful Accounts has a debit balance of $4,000; and sales for the year total $1,980,000. Bad debt expense is estimated at 1.25% of sales.

a. Determine the amount of the adjusting entry for uncollectible accounts. $

b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

                                                             Adjusted Balance Debit (credit)

Accounts Receivable                            $

Allowance for Doubtful Accounts          $

Bad Debt Expense                                $

c. Determine the net realizable value of accounts receivable. $

Answer rating: 100% (QA)

a Amount of the Adjusting Entry for Uncollectible Accounts Calculate the estimated bad debt expense ... View the full answer