Reference no: EM132995676

At the end of the current year, Accounts Receivable has a balance of $465,000; Allowance for Doubtful Accounts has a debit balance of $4,000, and sales for the year total $2,090,000. Bad debt expense is estimated at 1.1% of sales.

Problem a. Determine the amount of the adjusting entry for uncollectible accounts.

22990 = (2,090,000 x1.1%)

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

Accounts Receivable $465,000

Allowance for Doubtful Accounts 26,990 (4,000+22990)

Bad Debt Expense 22,990 (2,090,000 x1.1%)

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