At the End of the Current Year, Accounts Receivable Has

question 87

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 net sales.
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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:

Range

The difference between the highest and lowest values in a data set.

Score

A numerical expression representing a particular value or quantity, especially as assigned during or after an evaluation or test.

Variability

The degree to which data points in a dataset differ from each other and from their mean, showing the spread or dispersion within the set.

Skewness

A measure of the asymmetry of the probability distribution of a random variable about its mean.