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:

Insulin Shock

A severe form of hypoglycemia caused by an excess of insulin in the bloodstream, leading to symptoms like confusion, tremors, and in severe cases, coma.

Splint

A device used to immobilize and protect a body part.

Immobilization

The act of rendering a part of the body motionless, often through the use of casts or splints, to allow for healing or prevention of further injury.

Hypoglycemia

A condition characterized by an abnormally low level of glucose in the blood.