At the End of the Current Year, Accounts Receivable Has

question 135

Essay

At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000.?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:

Spending Power

The financial ability or capacity of an entity (individual, government, or organization) to make purchases or invest, influencing economic activity.

Enumerated Power

Powers that are specifically listed in the Constitution that define the authority of a particular branch of government.

Regulatory Ends

Objectives or goals that regulations aim to achieve, typically involving protecting public welfare, safety, health, and ensuring fair market practices.

Interstate Commerce

The conduct of trade, business, or transportation between states within a country, subject to federal regulations.