Analysis of Receivables Method At the end of the current year, Accounts Receivable has a...
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Accounting
Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a balance of $455,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and sales for the year total $2,050,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $19,600.
a. Determine the amount of the adjusting entry for uncollectible accounts. $
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable
$
Allowance for Doubtful Accounts
$
Bad Debt Expense
$
c. Determine the net realizable value of accounts receivable. $
Note Receivable
Quick Tire and Lube received a 120-day, 9% note for $84,000, dated April 9, from a customer on account. Assume 360 days in a year.
a. Determine the due date of the note.
b. Determine the maturity value of the note. $
c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank.
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