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.The company uses the percent-of-sales method.Its credit department has determined that uncollectible accounts will amount to 2% of net credit sales.
Required:
1.Prepare the year- end adjusting journal entry.Omit the explanation.
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

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.The company uses the percent-of-sales method.Its credit department has determined that uncollectible accounts will amount to 2% of net credit sales.
Required:
1.Prepare the year- end adjusting journal entry.Omit the explanation.
  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.

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.The company uses the percent-of-sales method.Its credit department has determined that uncollectible accounts will amount to 2% of net credit sales.
Required:
1.Prepare the year- end adjusting journal entry.Omit the explanation.
  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 December 31 of the Current Year,Accounts Receivable Has a Balance