Refer to the Numder of this question add with the second number hope this helps.
Answer:
$425,000
Explanation:
The computation of the net realizable value of the Accounts Receivable is shown below:
= Balance of account receivable - credit balance of Allowance for Uncollectible Accounts
= $450,000 - $25,000
= $425,000
We simply deduct the credit balance from the balance of account receivable so that the net realizable value could come
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Answer: Bad Debt Expense 28,000 Allowance for Doubtful Accounts 28,000
Explanation:
Account receivable = 300,000
Percentage uncollectible = 10%
Current balance = 2000
Adjustment to allowance for uncollectible accounts is given by :
(Account receivable ×percentage uncollectible) - current balance
(300,000 × 10%) - 2000
(300,000 × 0.1) × 2000
30,000 - 2000 = 28,000
Therefore, adjustment should be :
bad debt expense debit 28,000
allowance for doubful account credit 28,000
