Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a balance of $760,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,420,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $30,100.
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.
Accounts Receivable | $ |
Allowance for Doubtful Accounts | $ |
Bad Debt Expense | $ |
c. Determine the net realizable value of
accounts receivable.
$
Requirement a
The amount of the adjusting entry for uncollectible accounts= $23100
Balance required |
$ 30,100.00 |
Balance before adjustment |
$ 7,000.00 |
adjustment required |
$ 23,100.00 |
Requirement b
Accounts Receivable |
$7,60,000.00 |
Allowance for Doubtful Accounts |
$ 30,100.00 |
Bad Debt Expense |
$ 23,100.00 |
Requirement C
Accounts Receivable (Gross) |
$7,60,000.00 |
Less: Allowance for Doubtful Accounts |
$ 30,100.00 |
Accounts Receivable (Net) |
$ 7,29,900.00 |
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
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