Answer a: $18,000
Explanation:
The amount of adjusting entry for uncollectible accounts = $23,000 - $5,000 = $18,000
Answer b.
Accounts receivables (given in the question) | $565,000 |
Allowance for doubtful debts (given in the question) | $23,000 |
Bad debts expense (as per Answer a.) | $18,000 |
Answer c. $542,000
Explanation:
Net realizable value of accounts receivable = Accounts receivables - Allowance for doubtful debts
= $565,000 - $23,000 = $542,000
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