At the End of the Current Year, Accounts Receivable Has

question 11

Essay

At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and net sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000.
Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

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Definitions:

Energy Drink

A type of beverage containing stimulant compounds, typically caffeine, designed to provide mental and physical stimulation.

Sales

The exchange of a commodity for money; the action of selling something.

Cannibalized

The phenomenon where a company's new product eats into the sales of its existing products, often unintentionally.

Hot Dog

A cooked sausage, traditionally grilled or steamed and served in a sliced bun as a sandwich.