At the End of the Current Year, Accounts Receivable Has

question 63

Essay

At the end of the current year, Accounts Receivable has a balance of $750,000; Allowance for Doubtful Accounts has a debit balance of $6,200; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales.
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.

---

Definitions:

Authorization Cards

Documents signed by employees to indicate their wish to be represented by a labor union.

Organized Labor

A group of workers united as a single, representative entity for the purpose of improving the workers' economic status and working conditions through collective bargaining with employers.

Contingent Workers

Individuals who are employed in temporary or freelance positions, rather than holding permanent employment.

Decertification

The process by which a union is removed as the representative of a group of workers in collective bargaining or labor negotiations.