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Homework answers / question archive / b)The percentage of receivables method is used and an analysis of the accounts produces an estimate of $5,725 in uncollectible accounts
b)The percentage of receivables method is used and an analysis of the accounts produces an estimate of $5,725 in uncollectible accounts. entry, leave it blank. Page: DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 1 20-- Dec. 31 Bad Debt Expense 5,305 x 1 Allowance for Doubtful Accounts 2 5,305 X 2 3 3 Feedback Check My Work Partially correct Accounts receivable, December 31, 20-- 29,725 Less allowance for doubtful accounts 5,305 X Net realizable value $ 24,420 x
Journal entry
Date | Account and explanation | Debit | Credit |
Dec 31 | Bad debt expense (5725+420) | 6145 | |
Allowance for doubtful accounts | 6145 | ||
(To record bad debt expense) |
Account receivable December 31 | 29725 |
Less; Allowance for doubtful account | -5725 |
Net realizable value | 24000 |