Compute the net realizable value of accounts receivable

Assignment Help Accounting Basics

Reference no: EM131957665

Problem

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $795,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,580,000. Bad debt expense is estimated at 3/4 of 1% of sales.

1. Determine the amount of the adjusting entry for uncollectible accounts.

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

3. Determine the net realizable value of accounts receivable.

Reference no: EM131957665

Questions Cloud

Sexual reproduction in plants : Sexual reproduction in plants, animals, fungi, and other organism could not happen without meiosis. The primary reason is what?

How have the new technologies changed the way police do : How have these new technologies changed the way police do business? What are some of the issues / concerns this new technology brings with it?

Would you accept the control as working properly : You perform a nonstatistical test of control. The acceptable risk of assessing control risk. Would you accept the control as working properly? Why or why not?

Drugs used to treat diseases and conditions : List the classifications of drugs used to treat diseases and conditions of the respiratory system, and provide specific examples.

Compute the net realizable value of accounts receivable : Determine the amount of the adjusting entry for uncollectible accounts. Compute the net realizable value of accounts receivable.

What do you receive praise for at work or home : What do you receive praise for at work or home? What is something you do where you lose track of time when you are doing it?

What is peregrines investment income from serine : Peregrine Corporation acquired an 80% interest in Serine Corporation in 2009. What is Peregrine's investment income from Serine for 2012?

What barriers do you need to overcome to be successful : Reflect on your resources. What barriers do you need to overcome to be successful? Are there individuals in your personal or professional network.

Identify a problem in your organization : Identify a problem in your organization or community by describing the problem and creating an introduction to the problem.

User Account

All Pages