At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000. a. Determine the amount of the adjusting entry for bad debt expense. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable. $fill in the blank 5

a) The amount of the adjusting entry for bad debt expense = $50,400.

b) The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense are:

1. Adjusted Balance Accounts Receivable = $675,000

2. Allowance for Doubtful Accounts = $45,000

3. Bad Debt Expense = $50,400

c. Determine the net realizable value of accounts receivable = $630,000

Explanation:

A) Data and Calculations:

Accounts Receivable balance = $675,000

Allowance for Doubtful Accounts = $5,400 (debit)

Sales for the year = $3,000,000

Estimated uncollectible receivables = $45,000

Amount of adjustment for bad debt expense = $50,400 ($45,000 + $5,400)

b) The net realizable value of accounts receivable is determined by subtracting the amount of the Allowance for Doubtful Accounts ($45,000) from the balance of Accounts Receivable ($675,000).  This results to a realizable value of $630,000 ($675,000 - $45,000).

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; by looking at total product,marginal product,and changes in both after changes in inputs