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On January 1, 2012 the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $30,000 and $500, respectively. During the year the company reported $75,000 of credit sales. There were $550 of receivables written-off as uncollectible in 2012. Cash collections of receivables amounted to $74,550. The company estimates that it will be unable to collect one percent of credit sales.
The entry to recognize the write-off of an uncollectible account will:
The entry required to recognize the uncollectible accounts expense for 2012 will:
The net realizable value of receivables appearing on the December 31, 2012 balance sheet will amount
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