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

question 41

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 percent-of-sales method,the company determines that uncollectible accounts will amount to 2% of net credit sales.
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:

Manipulation

The act of controlling or influencing a person, situation, or system often in a skillful manner.

Bar Graph

A visual presentation that uses bars to depict frequencies of responses, percentages, or means in two or more groups.

Variable

An element, feature, or factor that is liable to vary or change.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.