At December 31 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.The company uses the percent-of-sales method.Its credit department has determined that uncollectible accounts will amount to 2% of net credit sales.
Required:
1.Prepare the year- end adjusting journal entry.Omit the explanation.
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.
Definitions:
Determinism
The philosophical belief that all events are determined completely by previously existing causes.
Ergonomist
A professional who applies scientific information about human capabilities and limitations to the design of products, processes, and systems to enhance human safety and performance.
Mind-Brain Problem
The philosophical and scientific debate concerning the relationship between the mind and the brain, particularly how consciousness arises.
Troubled People
Individuals experiencing emotional, psychological, or behavioral difficulties that significantly impact their day-to-day life.
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