Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit balance of $10,500; and sales for the year total $51,850,000. Bad Debt Expense is estimated at 1/4 of 1% 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. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. Instructions Allowance for Doubtful Accounts Estimate Instructions Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Interval Balance Percent Uncollectible Not past due $1,140,000 0.60% 1-30 days past due 516,500 3 31-60 days past due 182,000 5 61-90 days past due 54,900 16 91-180 days past due 36,500 38 Over 180 days past due 23,900 85 $1,953,800 Estimate what the proper balance of the Allowance for Doubtful Accounts should be as of December 31. Estimating doubtful accounts Instructions Allowance for Doubtful Accounts Estimate Instructions Allowance for Doubtful Accounts Estimate O ac Estimate what the proper balance of the Allowance for Doubtful Accounts should be as of December 31. Estimated Uncollectible Accounts Age Interval Balance Percent Amount Not past due $1,140,000 0.60% S 1-30 days past due 516,500 3% 31-60 days past due 182,000 5% 61-90 days past due 54,900 16% 91-180 days past due 36,500 38% Over 180 days past due 23,900 85% Total $1,953,800 $ tible