Reference no: EM132877199

Problem - Percent of sales method - At the end of the current year, Accounts Receivable has a balance of $325,000; Allowance for Doubtful Accounts has a credit balance of $3,900; and net sales for the year total $4,500,000. Bad debt expense is estimated at 1⁄2 of 1% of net sales.

Required -

(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.

(c) Determine the net realizable value of accounts receivable.