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:

First Dividends

The initial distribution of earnings paid to shareholders by a corporation that has just begun paying dividends.

Dividend Next Year

Dividend next year refers to the projected or announced dividend payments that a company is expected to distribute to its shareholders in the upcoming fiscal year.

Sales Growth

The increase in sales over a specific period, indicating the financial health and expansion rate of a company.