Homework answers / question archive / The unadjusted trial balance of Engrem Company at December 31, 2020 reports the following balances Accounts receivable $260,000 Allowance for doubtful accounts 1,800 Sales (all on credit) 1,550,000 Sales returns and allowances 80,000 *The Allowance for doubtful accounts has a debit balance

The unadjusted trial balance of Engrem Company at December 31, 2020 reports the following balances Accounts receivable $260,000 Allowance for doubtful accounts 1,800 Sales (all on credit) 1,550,000 Sales returns and allowances 80,000 *The Allowance for doubtful accounts has a debit balance

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The unadjusted trial balance of Engrem Company at December 31, 2020 reports the following balances Accounts receivable $260,000 Allowance for doubtful accounts 1,800 Sales (all on credit) 1,550,000 Sales returns and allowances 80,000 *The Allowance for doubtful accounts has a debit balance. All other accounts have their normal balances Required: (a) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 4% of accounts receivable. (b) What is the net realizable value of Engren's accounts receivable on its December 31, 2020 balance sheet? (c) Assume that instead of estimating doubtful accounts as 4% of gross accounts receivable, Engrem estimates 1% of net credit sales will b- uncollectible. What is Engrem's bad debts expense for the year ended December 31, 2020?