At the End of the Current Year,Accounts Receivable Has a Balance

question 34

Essay

At the end of the current year,Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $3,500,000.Bad debt expense is estimated at 1/2 of 1% of sales.
Determine a the amount of the adjusting entry for bad debt expense; b the adjusted balances of Accounts Receivable,Allowance for Doubtful Accounts,and Bad Debt Expense; and c the net realizable value of accounts receivable.

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Definitions:

Disjunctive Premise

A type of logical statement that presents two or more options in such a way that if one is true, the others must be false.

Negative Proposition

A statement or assertion that denies something, especially a predicate of a subject.

Disjunctive Syllogism

A form of logical argument where, from two alternatives, the denial of one implies the affirmation of the other.

Disjunctive Proposition

A logical statement that presents two or more alternatives, where the truth of any one of the alternatives makes the proposition true.