At the end of the current year, Accounts Receivable has a balance of $700,000, the Allowance for Uncollectible Accounts has a credit balance of $10,000 and net sales for the year are $2,000,000. Using the aging method, the balance of Allowance for Uncollectible Accounts is estimated at $30,000.
Required:
1. Prepare the adjusting journal entry at the end of the year
2. Determine the adjusted balances for Accounts Receivable and the Allowance for Uncollectible Accounts.
3. Determine the net realizable value of accounts receivable at the end of the year.

Question

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The Answer of At the end of the current year, Accounts Receivable has a balance of $700,000, the Allowance for Uncollectible Accounts has a credit balance of $10,000 and net sales for the year are $2,000,000. Using the aging method, the balance of Allowance for Uncollectible Accounts is estimated at $30,000.
Required:
1. Prepare the adjusting journal entry at the end of the year
2. Determine the adjusted balances for Accounts Receivable and the Allowance for Uncollectible Accounts.
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