At December 31 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 aging-of-receivables method,the balance of Allowance for Uncollectible Accounts is estimated at $30,000.
Required:
1.Journalize the adjusting entry.Omit the explanation.
2.Determine the net realizable value of accounts receivable at the end of the year.

Question

At December 31 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 aging-of-receivables method,the balance of Allowance for Uncollectible Accounts is estimated at $30,000.
Required:
1.Journalize the adjusting entry.Omit the explanation.
  2.Determine the net realizable value of accounts receivable at the end of the year.

Quizplus · Accepted Answer

The Answer of At December 31 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 aging-of-receivables method,the balance of Allowance for Uncollectible Accounts is estimated at $30,000.
Required:
1.Journalize the adjusting entry.Omit the explanation.
  2.Determine the net realizable value of accounts receivable at the end of the year.

At December 31 of the Current Year,Accounts Receivable Has a Balance