The amount for adjusting entry of uncollectible accounts is $120,500.
The adjusted balance of accounts receivable shall be $2,150,000.
The adjusted credit balance for the allowance of doubtful accounts is $110,000.
The adjusted debit balance of bad debts expense is $120,500.
The net realizable value of accounts receivable is $2,040,000.
<u>Explanation:</u>
step 1. The allowance for doubtful accounts = unadhusted balance plus adjusted balance
= $10500 plus $110000 = $120500
The amount of adjusting entry for uncollectible accounts is $120500
step 2. the adjusted balance of accounts receivable shall be $2150000
The unadjusted balance of accounts receivable will also be the adjusted balance of accounts receivable as there is no bad debt expense that is to be adjusted from accounts receivable. Therefore, the adjusted balance at the end of the current year is $2,150,000.
step 3. The allowance for doubtful accounst is as follows
Adjusted balance = bad debt minus unadjusted balance
= $120500 minus $10500 = $110000
The adjusted credit balance for the allowance of doubtful accounts is $110,000.
step 4. adjusted bad debt expense = $10500 plus $110000 = $120500
The adjusted debit balance of bad debts expense is $120,500.
step 5. net realizable value = $2150000 minus $110000 = $2040000
The net realizable value of accounts receivable is $2,040,000.
