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At the end of the current year, Accounts Receivable has a balance of $785,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,530,000. Bad debt expense is estimated at 1/4 of 1% of sales.
Problem a. Determine the amount of the adjusting entry for uncollectible accounts. ?
Problem b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Problem c. Determine the net realizable value of accounts receivable.
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