Sliders Company
Sliders Company Sells Its Merchandise Only on Credit

Sliders Company
Sliders Company sells its merchandise only on credit.The following data are available at December 31,2017:
$$\begin{array} { l r } \text { Sales } & \$ 375,000 \\\text { Sales returns and allowances } & 12,000 \\\text { Accounts receivable-January 1, 2017 } & 60,600 \\\text { Allowance for doubtful accounts-January 1, 2017 } & 3,200 \\\text { Cash collections during 2017 } & 362,500 \\\text { Accounts written off as uncollectible during 2017 } & 2,400\end{array}$$
-Refer to the data for Sliders Company.
The firm estimates that bad debts could be 1% of its net sales.
A) What amount will Sliders Company recognize as bad debts expense for the year?

B) Once this calculation is recorded, assume that the company has Accounts Receivable of $\$ 58,700$ and Allowance for Doubtful Accounts of $\$ 800$ . What will be the net realizable value once the adjustment from (A) is made?