Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit balance of $10,500; and sales for the year total $51,850,000. Bad Debt Expense is estimated at 1/4 of 1% of sales.

May24 Sold merchandise on account to Old Town Cafe $18,450. The cost of goods sold was $11,000.
June 28, 2019
On March 1, it was discovered that the following errors took place in journalizing and posting transactions:
June 28, 2019

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit balance of $10,500; and sales for the year total $51,850,000. 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.

Accounts Receivable$

Allowance for Doubtful Accounts$

Bad Debt Expense$

c. Determine the net realizable value of accounts receivable.

$

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp