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

question 81

Essay

At the end of the current year,Accounts Receivable has a balance of $900,000,the Allowance for Uncollectible Accounts has a debit balance of $1,000 and net credit sales for the year are $3,000,000.Using the aging method,the balance of Allowance for Uncollectible Accounts is estimated at $30,000.
Required:
1.Prepare the adjusting journal entry at the end of the year.Omit the explanation.
2.Determine the adjusted balances for Accounts Receivable and the Allowance for Uncollectible Accounts at the end of the year.
3.Determine the net realizable value of accounts receivable at the end of the year.

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Definitions:

Economic Sense

The logic or rationale behind economic decisions or policies, often evaluated in terms of benefits versus costs.

Progressed

Advanced or moved forward in development or improvement.

Nations

Vast collectives of individuals linked through shared ancestry, historical background, cultural practices, or linguistic similarities, residing in a specific nation or region.

Real GDP

The calculation of a nation's economic production, corrected for changes in prices due to inflation or deflation, to accurately represent the actual worth of the produced goods and services.