At the End of the Current Year, Accounts Receivable Has

question 151

Essay

At the end of the current year, Accounts Receivable has a balance of $750,000; Allowance for Doubtful Accounts has a debit balance of $6,200; and sales for the year total $3,500,000. Bad debt expense is estimated at ½ 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:

Peristalsis

The wave-like muscle contractions that move food through the digestive tract, from the esophagus to the colon.

Haustral Churning

The slow movement of the contents within the large intestine, facilitated by the segmentation movements of the haustra, aiding in water absorption and feces formation.

Ileostomy

A surgical procedure that creates an opening in the abdomen for waste to exit the body from the ileum, bypassing the colon.

Ostomy Device

A medical appliance attached to the body to collect waste from a surgically created opening in the digestive or urinary systems.