Answer:
Amount of Adjusting Entry for Bad Debts
Estimated uncollected Receivables $25,000.00
Less: Existing Provision $5,500.00
Adjusting Amt. for Bad Debts $19,500.00
Adjusted Balance of
Accounts Receivables $550,000.00
Allowance for Doubtful Accounts $25,000.00
Bad Debts expense $19,500.00
Net Realizable Value of Accounts Receivables
Accounts Receivables $550,000.00
Less: Allowance for Doubtful Accounts (-$25,000.00)
Net Realizable Value $525,000.00
