Reference no: EM132681409

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 -

Determine the amount of the adjusting entry for uncollectible accounts;

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

Determine the net realizable value of accounts receivable.