At the End of the Current Year, Accounts Receivable Has

question 147

Essay

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000.​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:

Extinction of Avoidance

The process through which an avoidance behavior is reduced or eliminated, typically by removing the negative reinforcement that maintained the behavior.

Extinction Trials

A process in classical conditioning where a conditioned stimulus is presented without the unconditioned stimulus, leading to a reduction in the conditioned response over time.

Aversive Stimulus

A stimulus that is unpleasant or noxious and that an organism seeks to avoid or escape.

Low-Probability Behavior

A behavior that is unlikely to be performed often, usually due to a lack of reinforcement or inherent appeal.