At the end of the current year, Accounts Receivable has a balance of $803,120; Allowance for...

At the end of the current year, Accounts Receivable has a balance of $803,120; Allowance for Doubtful Accounts has a credit balance of $5,189; and sales for the year total $2,213,000. Bad debt expense is estimated at 1/2 of 1% of net sales.

a. Determine the amount of the adjusting entry for bad debt expense.
$

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

	Adjusted Balance
Accounts Receivable	$
Allowance for Doubtful Accounts
Bad Debt Expense

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

Expert Solution



	Requirement (1)
	Estimated Bad debt Expense : 22130001/21%	$ 11,065

	Requirement (2)
		Adjusted Balances
	Accounts Receivable	$ 803,120
	Allowance for doubtful accounts	$ 5,876
	Bad debt Expense	$ 11,065

	Requirement (3)
	Net Realisable Value :
	Accounts Receivable	$ 803,120
	Less : Allowance for doubful accounts	$ (5,876)
		$ 797,244

	Note : Please comment down for any issues

ekkarill92 answered 1 year ago

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At the end of the current year, Accounts Receivable has a balance of $803,120; Allowance for...

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