Mediocrite, inc. makes and sells goods that are substandard. nancy, who has never bought or used a mediocrite item, files a suit against the firm, alleging that its products are defective. the company's best ground for dismissal of the suit is that nancy does not have

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)