At the End of the Current Year, Accounts Receivable Has

question 104

Essay

At the end of the current year, Accounts Receivable has a balance of $700,000, the Allowance for Uncollectible Accounts has a credit balance of $10,000 and net sales for the year are $2,000,000. 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
2. Determine the adjusted balances for Accounts Receivable and the Allowance for Uncollectible Accounts.
3. Determine the net realizable value of accounts receivable at the end of the year.

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Definitions:

Business Managers

Individuals responsible for overseeing and directing the operations within a business to meet its goals.

Psychological Disorders

Mental disorders comprising various psychological symptoms that cause significant distress or impairment in social, occupational, or other important activities.

Community Programs

Organized efforts within a community designed to promote the health, well-being, and societal integration of its members.

Insufficient Number

A quantity not enough in magnitude, quantity, or extent to meet a certain requirement or purpose.