At the end of the current year,Accounts Receivable has a balance of $900,000,the Allowance for Uncollectible Accounts has a debit balance of $1,000 and net credit sales for the year are $3,000,000.Using the percent-of-sales method,the company determines that uncollectible accounts will amount to 2% of net credit sales.
Required:
1.Prepare the adjusting journal entry at the end of the year.Omit the explanation.
2.Determine the adjusted balances for Accounts Receivable and the Allowance for Uncollectible Accounts at the end of the year.
3.Determine the net realizable value of accounts receivable at the end of the year.

Question

Quizplus · Accepted Answer

The Answer of At the end of the current year,Accounts Receivable has a balance of $900,000,the Allowance for Uncollectible Accounts has a debit balance of $1,000 and net credit sales for the year are $3,000,000.Using the percent-of-sales method,the company determines that uncollectible accounts will amount to 2% of net credit sales.
Required:
1.Prepare the adjusting journal entry at the end of the year.Omit the explanation.
2.Determine the adjusted balances for Accounts Receivable and the Allowance for Uncollectible Accounts at the end of the year.
3.Determine the net realizable value of accounts receivable at the end of the year.

At the End of the Current Year,Accounts Receivable Has a Balance