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Percent of Sales Method

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $805,000; Allowance for Doubtful Accounts has a debit balance of $7,000; and sales for the year total $3,620,000. Bad debt expense is estimated at 1/4 of 1% of sales.

a.  Determine the amount of the adjusting entry for uncollectible accounts.
$

b.  Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

  Adjusted Balance
Debit (Credit)
Accounts Receivable $
Allowance for Doubtful Accounts $
Bad Debt Expense $

 

c.  Determine the net realizable value of accounts receivable.
$

 

Sep 21 2020 Read more Less More

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