Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 29

Percent of sales method
At the end of the current year, Accounts Receivable has a balance of $2,150,000; for Doubtful Accounts has a debit balance of $10,500; and sales for the year total $51,850,000. Bad debt expense is estimated at ¼ of 1% of sales.
Determine (A) the amount of the adjusting entry for uncollectible accounts; (B) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and (C) the net realizable value of accounts receivable.