Analysis of receivables methodAt the end of the current year, Accounts Receivable has a balance of$3,460,000, Allowance for Doubtful Accounts has a debit balance of$12,500, and sales for the year total $46,300,000. Using the aging method,the balance of Allowance for Doubtful Accounts is estimated as $245,000. Determine (a) the amount of the adjusting entry for uncollectibleaccounts; (b) the adjusted balances of Accounts Receivable, Allowancefor Doubtful Accounts, and Bad Debt Expense; and (c) the net realizablevalue of accounts receivable.

Question

Analysis of receivables method
At the end of the current year, Accounts Receivable has a balance of
$3,460,000, Allowance for Doubtful Accounts has a debit balance of
$12,500, and sales for the year total $46,300,000. Using the aging method,
the balance of Allowance for Doubtful Accounts is estimated as $245,000.

Determine (a) the amount of the adjusting entry for uncollectible
accounts; (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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