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Homework: Chapter $8$

Analysis of receivables method

At the end of the current year, Accounts Receivable has a balance of $$685,000$; Allowance for Doubtful Accounts has a credit balance of $$6,000$; and sales for the year total $$3,080,000.$ Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $$30,600.$

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.

Accounts Receivable

Allowance for Doubtful Accounts

Bad Debt Expense

$$

$$

$

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

$

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