# Accounting

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of \$4,375,000; Allowance for Doubtful Accounts has a debit balance of \$21,300; and sales for the year total \$102,480,000. Bad debt expense is estimated at 1/4 of 1% of sales.

a. Determine the amount of the adjusting entry for uncollectible accounts.
\$
256,200

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

Accounts Receivable \$
4,375,000
Allowance for Doubtful Accounts \$
21,300 (wrong)
256,200
c. Determine the net realizable value of accounts receivable.
\$(wrong)

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